brit project 1

8/22/2019 Brit Project 1

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1. Marketing Channels

Britannia has tactically managed its marketing channels to retain control on the products as

well as pricing. Through its wide network of distribution it has possibly reached to all corners

of this country. While the wholesaler and the retailers look for maximization of their profits

from the different SKUs of a company it calls for the most efficient distribution network.

Britannia adopted the indirect marketing channel and uses the 2-level distribution channel as

shown in the figure. It also relies on the Dependent channel arrangement to avoid any conflict

with the intermediaries. The channel member functions are as follows:

1. Place order with manufacturers

2.Gather information about the potential and current customers,

Fig 2. Consumer Marketing Channel of Britannia

competitors and other actors and forces in the market environment.

3. Provide a successful storage and smooth movement of physical products in least cost.

4. Create more market by persuasive communication to stimulate purchasing.

Britannia also takes care of its forward and backward flow of activity in respect of product

and information. While analyzing the channel design decision it takes into account the lot

size, waiting and delivery time and product variety. Then it segments it market depending on

its preset criteria and assigns proper channel for each segment minimizing total channel cost

and still providing desired levels of service output. For products like hard biscuits or without

any cream or wafer indirect marketing is what Britannia follows. But for perishable products

it requires more direct marketing. To provide these products to big retailers like food-bazaar

sometimes Britannia itself does the distribution through its sales force or their agent does it

for them.

Being a daily consuming food in households, biscuits are needed in huge lots in the retailers.

Britannia does an Intensive distribution (Mass Coverage) depending on their forecasting in

that area. As Britannias products are consumed daily, relatively low priced products and

consumers seek these products in the nearest stores at their convenience so stuffing of

products in all possible corners are needed. With large area of coverage the distribution cost

increases, but then it have to be offset with the high increase in sales volume.

As far as channel powers are concerned its undoubtedly the Product power or the Backend

power of Britannia that is in the market place of distribution. Therefore channel members

have little choice but to take up these products as part of their sales and distribution portfolio.


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But to maintain a healthy relationship with the channel members a perfect two-way

conversation is also very essential. As members pass on the required information to

Britannia, it also provides incentives to the retailers. These incentives are normally additional

free products, bonus or free trips for achieving sales goals. Britannia also provides shelves to

its retailers when and as needed to accommodate their products at free of cost with

Britannias standees or advertisements along with it.

As far as marketing channels are concerned Britannia has also been into telemarketing and

internet marketing. In 2009 Britannia with vendor Mobile2Win, a leading mobile VAS

company that provides contests and interactivity, initiated the famous campaign Little

Hearts, Many Connections! to promote its product Little heart. It was a network making

SMS sending campaign for young people to indulge in little chit chats over SMS and the

lucky winner could get away with a new Chevrolet Spark.

Fig 3: Little Heart Campaign on MTV website Fig 4: Britannia Online Memory Game

launch. Thus Britannia has used its hybrid channels to venture into different arenas to

maximize its market coverage. The diagram in Fig5 tells us about the type of value-adds

happen with different marketing channels and Britannia has done their campaign almost

through all channels and that too with tremendous success. The campaign was done through

internet and TV commercials. In the web it was put up on MTVs website. For another

famous campaign of Britannia khao world cup jao campaign increases its profit by 37%. In

2001 Britannia Lagaan Match was the most successful promotional activity of the year.

Maska Chaska has also been Indias most successful FMCG

Fig 5. The Value-adds vs Different Channels

As far as Britannias marketing channels are concerned it is very much effective and has been

in place for years. So it has shaped itself with the market fluctuation and got matured with

time. But compared to Priyamarie Gold or ParleG the rural penetration of Britannia has not

been that much successful. As a strategy it can promote through local magazine, radio and

TV also. In terms of channel they can employ local workers and utilize their acquaintance asa strong penetration mechanism. Otherwise as such there is no issue in Britannias marketing

channels.

2. Physical distribution cum logisticsstrategies

Physical distribution starts at the factory. Manager at Britannia make decision of warehouse

and transportation carriers that will deliver the goods to final destination in the desired time atthe lowest cost possible.


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Fig 6: Distribution channel

Britannia is using the intensive distribution for its product so as to achieve the following

benefits:

Increase of the product availability

Promote the retailers to compete more aggressively

Increase coverage and sales

Major players in the distribution network are as mentioned below:

Depots

Wholesalers

Agents (If required)

Retailers

Britannia has nearly 1800 wholesalers catering to 501000 retail outlets directly or indirectly.

It also has a strong dedicated field force service which is around 200 in numbers.

Additionally there are 48 depots, supplying goods to its wide distribution network.

Britannia has level 1, level 2, level 3 distribution channel levels.

Level 1:

Availability of Britannia biscuits at all the departmental stores across the country

Level 2:

Since its an FMCG product, this channel exists for the customers spread across India

Level 3:

Mass consumption and suitable for both domestic and international coverage

Its logistic strategies include material management, material flow systems and physical

distribution aided by information technology (IT).

Overall logistics and distribution channel can be summarized as given below:

Fig 7: Overall logistic


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Suggestions for the Britannia DistributionChannels/ logistics

Increase the margins:

Motivate the various channel members as it is very important factor for the increasing the

margin for the hard selling items

Pushcarts:

These should be increased in number so as to increase the penetration in market especially in

rural market

3. Sales force Design of BritanniaThe following is the sales force design of Britannia Industries

SALES MANAGER

AREA SALES MANAGER

SALES OFFICER

TERRITORY SALES IN-CHARGE

POWER SALES MANAGER (PSM)

AND

ROUTE SALES ADVISORS

Fig 8: Sales Force Structure of Britannia

Sales Force Compensation

Sales Force Size

Sales Force Structure

Sales Force Strategy

Sales Force ObjectiveThe following aspects should be considered when designing a sales

force:

Designing the Sales Force


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Fig 9: Designing a Sales Force

Reference: Marketing Management (Kotler et al), Page 537

Sales Force Objectives and Strategy:

The main objective of the sales force of Britannia Industries is to generate higher sales which

would translate to increased revenues for the company. The sales managers in different

regions deliver the products of the company to the distributors in those regions who in turn

supply the products to the various retailers and grocery outlets.

Sales Force Structure:The sales force structure of Britannia is as given in Fig 6 above. The organization has a sales

manager to whom different Area Sales Managers report. Under the Area Sales Manager,

there are several Sales Officers who in turn supervise various Territory Sales-in-Charge

personnel. These Territory Sales In-Charge people supervise the Pioneer Sales Managers and

Route Sales Advisors. These people are responsible for interfacing with the various

Distributors and wholesalers.

Sales force Size:The company has about 2000 sales personnel nationwide managing sales and attracting

potential new customers.

In 2007, the FMCG manufacturer entered into a contract with Trichy-based tech startup

mPowerForce Mobile Technology India Ltd with the purpose of providing mobile technology

services to about 200 outdoor sales personnel. In 2008, during a period of high inflation,

Britannia was able to shore up its sales significantly by taking up bulk supplies to alternative

and in-transit avenues of consumption.

BRITANNIA

Fig 10: The Four Factors of a SuccessfulSales Force

Reference: Marketing Management (Kotler), Page 540


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Britannia Industries is a company that is still in the growing stage and hence the objective of

its sales force team is to penetrate into existing segments and develop new ones.

RecommendationsSince Britannia biscuits are consumed in bulk in places like railway stations, airports, cinema

halls and in corporate canteens, the company can mobilize a separate sales force to cater to

these mass consumption avenues.

Distribution network for Britannia

Britannia has 4 production or manufacturing outlets which are in Delhi Calcutta Chennai Rudrapur in

Uttaranchal Gwalior which are owned by Britannia and employees more than 4400 people Besides

its self

owned units Britannia also uses the facility of more than 60 contract points for biscuits breads cakes

etc

where in the labour used for manufacturing is not owned by Britannia but the technology and raw

materials

are provided by Britannia itself

In this project we are analyzing the distribution network for Britannia biscuits for Delhi

The first rung in the distribution network for Britannia is the transport of the goods from the

manufacturing

plants in Delhi to the 2 CFA s carrying and forwarding agents located at Neb Sarai and the other one

at

Mundka mother depot

The CFA maintain the inventory on behalf of the company and when the goods are supplied from

Britannia

to the CFA s it is not considered a sale but a transfer and therefore there is no change in ownership

CFA

gets commission on the basis of transaction i e on no of boxes held in the inventory CFA has to bear

labour

cost and his godown cost The cost of transport from the company to CFA is born by Britannia itself

And the

cost of transport from the CFA to distributor is also borne by Britannia only


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One of the reason that Britannia uses the facility for CFA is that because of its wide spread sales all

over

India and with one production unit not manufacturing all the variety itself so through the channel

CFA

Britannia manages to save a lot of behalf of not having to pay central sales tax 4 So therefore for

example if

50 50 is manufactured only in Calcutta than it can be sent to the CFA in Delhi as well as other state

CFA

without having to pay 4 CST

The second rung in the distribution network for Britannia are the authorized distributors and

authorized

wholesalers as termed by a company rep In total there are 54 authorized distributors in Delhi and

NCR

Britannia does not incorporate stockist in its distribution network because of the large number of

distributors

already present in the network which are sufficient to cover the wide regions Distributors have their

own

sales force labour transportation facility Each salesperson allowed covering max of 40 outlets

everyday The

reason is that it is felt that it is not within human capacity to cover more than 40 outlets a day and if

done so

then the salesperson might be exhausted enough and not spend enough time on each counter

required by

him for building up relations with the shopkeeper

Distributor s salesperson is the one who takes orders from the retailer and wholesaler He goes once

a week

to all the retailers and wholesalers in his territory to take the orders and gives that order to the

distributor

Distributor assesses his stock situation and all short stock is ordered to the CFA keeping in mind the

minimum order limits

The areas for the Distributors are divided in such a manner to prevent overlapping if overlapping is

found


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then penalty ranging from Rs11000 Rs 21000 can be charged to that particular distributor Max 0 4 of

the

total invoice bill of the distributor is allowed as replacement by the company

The distributor is also given a certain amount of monthly sales target by Britannia The cost oftransport from

the distributor to the retailer wholesaler is borne by the distributor itself Distributors sell mainly in

cash and it

is very rare to have credit sales and that also for those who have a long term relationship with the

distributor

The margin for the authorized distributor is of approximately 4 5 5 and after expenses like labor

transportation etc he is left with a margin of 2 2 25

In case of selling to wholesaler distributor passes on 1 of his margin to the wholesaler This is done by

giving

the wholesaler a discount on the billing rate Billing rate is the rate at which the distributor sells to

the retailer

To illustrate this better we can take this example

Suppose the distributor obtains a packet of Britannia 50 50 from the CFA at a price of Rs 5 85 so now

for

selling it to the wholesaler he will add only a 4 margin and pass the 1 of his margin to the wholesaler

that is

5 85 4 5 85 6 08

Practically this is done by giving the wholesaler a discount of 1 on the billing rate i e 6 14 6 14 1 0

0614

around 6 paisa

And in case of selling to the retailer the distributor will take a complete 5 and sell to retailer at

5 85 5 of 5 85 Rs 6 1

The third channel member is the wholesaler The wholesalers are supplied directly by the distributor

He gets the discounts as well as the schemes The wholesaler not only keeps the other competing

biscuits

brands but also complementary products like chips namkeens etc the wholesalers are basically

located in

places like chawri bazaar kharibaoli sadar bazaar and other local wholesale markets like janakpuri


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wholesale market uttamnagar wholesale market etc

The margin for the wholesaler is the 1 2 passed to him by the distributor He gets this margin because

of his

bulk purchases This margin can vary depending on the quantity purchased by the wholesaler and his

bargaining power that depends on how critical he is for the company This margin can well go up to 2

5 of the

billing rate in some cases

Huge margins are passed on to the wholesalers when the distributor is in need of cash to make

payments to

the co to get further stock The wholesalers demands higher margins because they pay in cash huge

amounts and hence charge opportunity cost of that money or the interest Distributor does that

because of

two reasons

He needs cash to make payments to the company before ordering new stock His stock gets sold and

hence

he meets the turnover obligations

Taking the above example the wholesaler gets the packet of 50 50 for Rs 6 08 from the distributor

and adds

his 1 and sells to the retailer at

6 08 1 6 08 6 14

One of the very interesting things that we noticed in the dealings of the wholesalers was a pricing

technique

called undercutting that was used by the wholesalers Under this the wholesaler who gets 1 1 5

discount or

margin from the distributor keeps only a 0 5 1 margin with himself and forwards the rest of 0 5 1

margin to

the retailer

And also any additional scheme that the distributor passes on to the wholesaler

is passed by the wholesaler to the retailer either partially or fully in terms of price reductions

Since the retailer gets an additional 1 discount from the wholesaler he prefers

buying it from the wholesaler rather than buying from the distributor at the normal billing rate This


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phenomenon is known as undercutting by the wholesaler This kind of situation is worse for the

company

salesman because he cannot get orders at the billing rate from the retailer

Company sometimes tackles this situation by giving some additional schemes to the retailers thatare not

given to the wholesaler hence prompting the retailer to buy from the company salesman rather than

the

wholesaler

Loreal s solution to wholesaler s undercutting was that it started supplying only to the retailers

at the billing rate and ceased the supply to the wholesaler s

The fourth and the most important link of the distribution network is the retailer The retailers get

their supply

either from the distributor or the wholesaler This distinction comes due to the size of the retailer

The big

established retailers are provided with the supplies by the distributors It is a downward flow They

place their

order with the distributor and are then supplied once a week or twice a week depending on their

orders and

their turnovers

Whereas the small retailers pan hawker etc go to the wholesalers and buy small quantity s from

them and

this is an upward flow and not belonging to the original distribution flow which is downward moving

The retailer sells at a margin of minimum 12 and maximum 22 on one piece

Taking the above example again suppose the retailer gets a packet of 50 50 from the distributor for

Rs 6 14

and now he adds his 14 margin and sells to the final consumer for

6 14 14 6 14 Rs 7

The final consumer now gets this pack of 50 50 for Rs 7

Modern trade chain

Today apart from the normal small retailer there is a trend of food super stores like big bazaar that

keep


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almost each food item apart from others These superstores can not be covered by the usual

distribution

network Therefore there is a separate distribution network that covers these super stores

institutions like

colleges schools hospitals railway stations etc

Under this network the CFA is the same like the one for the company s main distribution network

but

generally there is a separate distributor appointed who caters only to these super stores and

institutions

He takes care of these institutions and the price charged is different for them This distribution

network is

called the modern trade chain In the modern trade chain like the modern bazaar the margins of the

store are

determined on the basis of the shelf space they allocate for the Britannia and where exactly is this

shelf

space allocated like at the entry of the store in the range of the eyes or in the upper most or the

lower most

shelf The bargaining power of the store is also determined by the quantity of the order and the fame

of the

store

Display commission or margins is a major source of revenue for the modern bazaars Since the

modern

bazaars do not buy quantity in bulk vis a vis wholesalers and have a high turnover they require a

regular and

frequent supply Due to this reason the company generally assigns the task of supplying to them

using

separate distribution network But sometimes the same distributors that are supplying through the

normal

channel can also be used when the demand expected is not significant to assign a separate channel

Britannia s Weaknesses

Inventory management

Britannia has a large variety of biscuits and this variety brings with it the problem of inventory

management


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Britannia does not give its salespersons PDA s and the distributors are also not too tech savvy vis a

vis the

Hindustan Lever Distributors Due to this various problems arise which lead to situation of stock outs

with the

distributors and CFA s It leads to bulging costs of the company which has to provide all the necessary

requirements of distributor from the CFA that could have been met from another distributor

Improvement in distribution channel Continuous Replenishment System CRS should be brought in so

that

when distributors enters his closing and opening stock of each variety then automatically company

will come

to know which variety has to be supplied to each distributor According to norms set by the company

distributor has to keep minimum quantity of each variety This system will help in saving time reduce

order

taking mistakes and reduce dependence on manpower At present this system is only partially used

as some

distributors still place their orders with company on telephone or to Territory sales in charge This

will also

help in proper inventory management by this system mother depots will easily come to know the

requirement of each variety depending upon distributor sales

The company can benefit from proper inventory management by using this CRS system The stocks to

the

distributor who needs particular variety can be supplied to him from the other distributor s godown

who has

excess stock of that particular variety of biscuits Hence saving on the time and cost and preventing

revenue

losses simultaneously

It was found that there was a delay in production cycle and all the varieties does not reach on time

with

mother depots which leads to loss of revenue

Less variety with the retailers

The retailers only keep a selected stock of biscuits with them only the ones which command a high

demand


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Biscuits are a product that requires high trial and this cannot be possible if the variety is not available

at the

nearby retailer

Company should induce the distributor by giving him good incentives in order to push all thevarieties Along

with that company should take further initiatives to popularize different varieties They should

ensure that the

retailer keeps as much variety as possible and include in the kitty less popular biscuits like nicetime

milkbikies etc

No Periodic Meetings with Distributors

It was found that distributors meeting with company members rarely takes place More frequent

meetings

should be held which will help in knowing the need of retailers and hence customers need

STRENGTH

Their strong distribution channel that gives them wide market coverage Availability of Britannia

biscuits

everywhere from small pan shop to big bazaar vast market coverage by distributors makes its

distribution

channel stronger This uniqueness would also help in distributing newly launched product new

category like if

Britannia ventures into production of toiletries as both products are non durable and they need

market

penetration by its distribution channel which Britannia already has

Strong relationship with distributors and the retailers that can be leveraged upon at the time of

introduction

of new products

DISTRIBUTOR

CARRYING AND

FORWARDING AGENT

FACTORY OUTLET

WHOLESALER


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RETAILER

CONSUMER

Britannia's market leadership in breadbusinessThe essay examples we publish have been submitted to us by students. The essays are thestudents' work and are not examples of our expert essay writers' work.READ MORE

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Executive Summary

For a big organization like Britannia Industries Ltd, the business hugely depends on thedistribution channel and the consumer attitude towards the product. In distribution channelretailers plays a very important role. While making a product a SKU (stock keeping unit) of theshop 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, companyschemes, window display and reference of the shop. Among these, company schemes make thedifference and are the highest sources of motivation after profit margin. Retailing demands aconstant push from the company.Marketer needs to use advertising and brand building strategies to address the discerning buyersand retail push to in different buyers. The manufacturer should understand consumer behaviourbecause retailers can't help quality and price. It is only up to manufacturers to deliver whatconsumer wants.There is a greater need to understand the retailer behaviour. Considering them as a team,working for the company may help them to be attached to the company. There should be afeeling of belonging to the company in inner of the retailers. This can be done by setting valuesclub for retailers so that they may exchange views with the company and help in understanding

consumer behaviour.Literature ReviewA channel is the pipeline through which a product flows on its way to the consumer. Themanufacturer puts his product into the pipeline or marketing channel and various marketingpeople move it along to the consumer at the other end of the channel.According to American Marketing Association: " A channel of distribution or marketing channel, isthe structure of intra company organisation units and extra company agents and dealers,wholesale and retail through which a commodity product or service is marketed."Functions of Channel Intermediaries

Reconciling the needs of producers and consumers

Improve efficiency by reducing the number of transactions and creating bulk for transportation

Improve accessibility

Providing specialist services
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Channel Distribution for Consumer Goods

1. Zero Level Channel:

Manufacturer---- consumer(Direct marketing includes use of personal selling, direct mail, telephone selling and internet.Examples are Avon Cosmetics, Acquaguard, Amazon. Com)

2. One Level Channel:

Manufacturer---Retailer---Consumer(It is economical for producers to supply directly to retailers than through wholesalers.Supermarket chains and Wal-Mart are examples)

3. Two Level Channel:

Manufacturer--- Wholesaler--- Retailer---Consumer(Wholesalers buy in bulk from producers and sell smaller quantities to retailers)

4. Three Level Channel:

(Producers delegate the task of selling their products to an agent who contacts wholesalers andreceives commission on sales. Prevalent in foreign operations)Decisions Involved in Distribution of Goods

1. Customer service: What level of customer service should be provided?

2. Order processing: How should orders be handled?

3. Inventory control: How much inventory should be held?

4. Warehousing: Where should the inventory be located? How many warehouses should be used?

5. Transportation Mode: Which modes of transport should be used to transfer goods on time andwithout damage?

6. Materials Handling: How will the products be handled during transportation?

Bread IndustryThe Bread industry is low - tech and low margin industry. In 1977, the Government of India hadreserved bread industry for small scale industries (SSI). The then existing two large units viz.,

Britannia Industries Limited and Modern Food Industries Ltd. were however allowed to continueon the basis of their respective existing installed capacity.35 percent of the total production comes from the small scale sector with about 1500-1800 unitsin operation. The organized sector accounts for 20 percent of the total production. The balanceproduction comes from the un-organized traditional bakery units operating under cottage/tinysector numbering approximately 65000 units in the country. The two major players i.e. BIL &MFIL are having a market share of 10-12 percent and 7-8 percent respectively. Apart from thesetwo, there are few large regional players such as Spencers in South India, Vibbs in Maharashtra,Harvest Gold and Perfect in Delhi, etc.Bread being consumed by wide cross - section of the society, the marketing of bread is based ona strong retail distribution network which services the customers. As bread industry is a lowmargin business, cost control is crucial in sustaining profitability in the long run.

The total market size of bread industry is approximately 15 billion standard loaves (SL) or 1.5million tonnes. The current growth is around 5 - 6 percent p.a. and is expected to remain in thesame level in the medium term. Citing the financial distress faced by the bread industry, All IndiaBread Manufacturers Association sought assistance from government and sought inclusion ofbread in Centre-sponsored schemes.Government should extend timely assistance to the ailing industry, which is employment orientedand productive users of agriculture," AIBMA president Vinod Tiwari said. He said the governmentshould also include bread as a food item in the Mid-Day Meals Scheme and Integrated ChildDevelopment Scheme.The government should assist the bread manufacturers by making bread as a compulsory fooditem in the mid-day meals Scheme," he said. The bread industry also demanded preferentialallotment of wheat to the industry at export rates that could help the growth of the industry.

Tiwari stated escalating prices of wheat flour has lowered profit margins resulting in closure ofover 250 small scale bread units, while over 1,000 units are on the verge of closure. "Theperennial problem of low margin and stiff competition, short shelf-life, unprecedented escalation


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in the cost of fuel, transportation, other ingredients have added to the woes of the industry,eroding its competitive capabilities," he added.There are three segments in the Indian bread industry such as Regular, Popular and Nutrichoice.Britannia's major strength has been to build presence across all price segments. They havesucceeded in doing so in a well-balanced manner, each segment contributing approximately athird of revenues. Britannia approaches the high-volume, low-price category, through its Regular

Bread. Two other major players are in competition. One is Perfect and other is Harvest in NCEregion, IndiaToday Britannia is a market leader in terms of market share and has appreciable momentum inthe form of strong revenue growth while maintaining a respectable return on sales. To reach thisposition, Britannia's strategy has been one of incremental rather than radical innovation. From abranding standpoint, their recent strategy has been to leverage well-established brands, ratherthan establish new ones.Britannia Industries has taken full control of the Bangalore-based bakery foods retailer DailyBread. Britannia, which had acquired 50% stake in June 2006, has now mopped up theremaining shares, taking over the operational reins fully from the original promoter Arjun Sekri."We had an original plan to take full control of Daily Bread by 2011, but we have now advancedthat," Vinita Bali, MD of Britannia Industries, told ET. Daily Bread is a manufacturer and retailer of

bakery products, including specialty breads, across the institutional and retail segments. It alsooperates standalone retail outlets and kiosks in markets like Bangalore and Goa, which is nowlikely to be scaled up. Daily Bread is as an incubation venture that it is currently being perfectedin order to be rolled out once the external environment improves, Ms Bali added."We are not talking about a national rollout because this is still not a venture that will add'numbers' to Britannia top line. It is not there yet," she explained Britannia is now also taking thefranchise route to expand the retail store footprint. Daily Bread has 11 standalone outlets inBangalore and one in Goa, where it recently entered through a franchise route.Daily Bread had experimented with several formats, including a bakery retail store and one with acafe-like ambiance. "While this gave us an opportunity to dabble in retail and shape thebusiness, we realized the economics of a quick-service restaurant is entirely different as itrequires a chain of outlets and resources to man it. Bakery is our core competency and our focus

will be on intensifying this facet of the brand," Ms Bali said.Daily Bread has also tied up with large format retailers such as Spencer's to set up shop-in-shopformats and is currently banking on a saleable kiosk model. Britannia will, however, not look atrebranding Daily Bread as it is already an established brand name, positioned one step aboveregular bread brands.4P's of Britannia

Product

Rather than venture into new product categories, Britannia has used line extension, stayingwithin existing categories and introducing product variations (often around nutritiousness). Onerecent visible area of innovation has been packaging, with the introduction of low-price, small-quantity packs, known as nano packs. By and large then, the strategy has been a conservativeone, building on existing strengths, rather than creating ones from scratch.Promotion:The success of Britannia's brands has been the result of sound product quality and astuteadvertising. In the food business, marketing is a key to success."The major competitors in the bread market all have good distribution systems and there is nomajor difference in product manufacturing technology. Those are not real differentiators;marketing is"The company spends about 7% its revenues on advertising and it appears to spend it to goodeffect. 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 recognised for its innovative approach toproducts 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 mostsuccessful product launch.


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Price:In products, the strategy has been a relatively conservative one, of line extension; in packaging,Britannia has been more adventuresome. In 2007 it introduced low price small-quantity packs,known as nano packs. Depending on the brand, these retail for Rs 5 and 7. The low price andlow unit count are destined to attract the on-the-go urban consumer, as well as the more budget-constrained rural consumer.

Place:There have been no major strategic innovations in distribution in the last few years. Britannia'sdistribution in urban areas is excellent. However 72% of India's population still lives in villagesand Britannia needs to worry more about tapping and therefore distributing to that market.

Research Methodology

Research in common parlance refers to a search for knowledge. One can also define researchas a scientific and systematic search for pertinent information on a specific topic.FRANCIES RUMMER defined "Research: It is a careful inquiry or examination to discover newinformation or relationship and to expand or verify existing knowledge.

Research is the solution of the problem, whether created or already generated. When research isdone, some new outcome comes out, so that the problem (created or generated) is solved.Primary Objective(s)

To study about the marketing channel of Britannia bread which service the customers

Is Britannia able to maintain their market leadership in terms of market share in bread industry inNCR region, India?

Secondary objective

To understand the FMCG (bread) business, identify the problems faced by Britannia bread in theIndian market.

HypothesesHO = Britannia is able to maintain their market leadership in terms of market share in breadindustryH1= Britannia is not able to maintain their market leadership in terms of market share in breadindustryResearch Design: Descriptive research designAs I have to analyse the retailers behaviours towards bread industry. Therefore descriptiveresearch design is the most suitable research design. Because it includes survey and fact-findingenquiries of different kinds. The major purpose of descriptive research is description of the stateof affairs as it exists at present. Descriptive research helps in measuring such items as, forexample, frequency of shopping, preferences of people, or similar data.

Objective of the study: To know the current scenario of bread industry in NCR region byconducting a market survey.

Methods of data collection: Primary data: Interview, Questionnaire, Store Audits, Observations,Examination of Records and Schedules

Secondary data: Internet, Newspaper and Journals.

No. of sample: 400

Point of data collection: Retailers, Wholesalers, Distributors and Suppliers

Sample Design

Type of universe: Finite universe such as retailers, distributors, wholesalers and suppliers etc.

Sampling unit: Ghaziabad, Noida, Delhi and Gurgaon

Source list: Retailers, distributors, wholesalers and suppliers etc.

Size of sample: 400

Parameter of interest: People which are connected in bread business.

Budgetary constraint: Undefined


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Sampling procedure:

Probability sampling: Simple random sampling, stratified sampling and area/cluster samplingNon probability sampling: Deliberate sampling and judgment samplingScope of the Study

To analyze the retailer awareness for different variety of bread.

This objective gives a clear idea regarding the retailer awareness towards different variety ofbread as well as towards the different brands prevailing in the market. The retailer's awarenesscreates a demand towards the particular product.

Understanding the demographic profile of consumers.

The consumer acceptance depends upon the knowledge and maturity level that he has gainedduring his age for the different food habits prevailing in the surrounding. The age factor is animportant factor to know product demand for a particular age group. So the interest can be madeto motivate those age groups for buying their product.

Identify the competitor's strategy.

The competitors pace of capturing consumers though they have similar products in different labelname of different companies. Competitor's strategies force a producer to think different to

acquire the reasonable profit from the market and retention of customers for his product.Competitor's strategies vary because of competitiveness among them to create identity in front ofthe consumers by showing different activities and promoting their product name through differenttechniques. This objective shows the prevailing strategy of the product and the enhancement forthe product for greater acceptance in the market.

Analyze the competitor's market share.

The retention of customers changes from time to time. The retention of customers shows themarket share. The retention from different from different product shows the orientation ofconsumers towards the product. The orientation of consumer change due to the various factorsas explained in the above objectives. The numerical value of their customer retention gives aclear picture regarding demand of their product. From these producers change their strategy toretain more customers.

To analyze the trends of arrivals, prices and other related factors of the bread market all overNCR region.

Identify potential market and major market leaders and understand the competitive environment.

Get insight in to trends in market performance.

To suggest ways and means to enhance the marketing and sales strategy of bread.

Limitations

Time will be a major constraint, in completing the project. As the project is very vast and there ispaucity of time.

Retailers may be biased while giving information on different competitors.

The study is limited to the Delhi, Ghaziabad, Gurgaon and NOIDA region giving less importanceto other cities under NCR.

The seriousness of the respondents and their ability to justify their answers may also be alimitation.

Data CollectionData Type: In this research the type of data collection is

Primary data

Secondary data

Research is based upon various types of information .data which is used in the research workcan be categorized under two head namely -Primary data

Primary data are that which are collected afresh and for the first time and thus happens to beoriginal in character. Various methods which were used to collect primary data were-


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Observation method

In this method the information is sought by the way of direct observation without asking therespondents.

Interview method

It involves presentation of oral verbal stimuli and reply in terms of oral verbal responses. This

method was used throughPersonal interview- Asking questions in face to face contactTelephonic interview- contacting respondents on telephone itself

Questionnaire method

In this method a questionnaire is sent, usually by post, to the person concerned with a request toanswer the question and return the questionnaire. A questionnaire consists of a number ofquestions printed or typed in a definite order. The questionnaire is mailed to the respondents whoare expected to read and understand the questions and write down the reply in the space meantfor the purpose in the questionnaire itself.

Schedules

This method is very much similar to questionnaire method with a little difference which lies in the

fact that schedules are being filled by enumerators.Secondary dataSecondary data are the information which is attained indirectly. They are the data collected bysomeone else and which has already passed through statistical process. There exist two sourcesof secondary dataInternal sources- They can be classified into four broad categories-

Accounting records-They generate a great deal of information. It gives a detailed analysis ofsales by product, customer, industry, geographical area.

Sales force reports- This source provide a great deal of information.

Miscellaneous reports- Any studies done on marketing problem of the company, special auditsalso provide a good deal of information

Internal experts- Executives working as product manager, marketing research manager,advertising personnel also serve to be a good source of information.

External sourcesExternal secondary data do not originate in the firm and are obtained from outside source.Examples are Govt Publications, Non-Govt Publications, Newspapers, Magazines, Journals, andWebsites etc.Testing Of HypothesisEthical Issues in Research:While doing a research there are some ethical issues which can be arise. These are:

1. Whether participants in research are being given appropriate information to make a properlyinformed decision.

2. People worry about what sorts of restrictions are in place to make sure the information you areaccumulating isn't going to go elsewhere."

3. Many people also fail to answer precisely the questions they have been asked.

4. Strive to avoid bias in experimental design, data analysis, data interpretation, peer review,personnel decisions, grant writing, expert testimony, and other aspects of research whereobjectivity is expected or required. Avoid or minimize bias or self-deception. Disclose personal orfinancial interests that may affect research.

Resources:

There are following resources required to complete the proposed research which are


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Research assistant, Office supplies (Pens, Notepads, Poster Paper, Printer Ink, and Printerpapers), Electronic Supplies (mini-disc recorder, batteries, Digital camera, Laptop), Services(photocopying), Transportation (Bus, taxi and walk), Accommodation (Hotel Room) and Food.Gantt chart:In the following example there are seven tasks, labeledAthroughG. Some tasks can be doneconcurrently (AandB) while others cannot be done until their predecessor task is complete

(Ccannot begin untilAis complete). Additionally, each task has three time estimates: theoptimistic time estimate (O), the most likely or normal time estimate (M), and the pessimistic time

estimate (P). The expected time (TE) is computed using the formula (O+ 4M+P) 6.

References / Bibliography

Edited articles

BREAD: which ones to buy? Why? INSIGHT -The Consumer Magazine Vol.24 No 6,NOVEMBER-DECEMBER2004 (6-15)

For book

PHILIP R CATEORA, JOHN L GRAHAM, PRASHANT SALWAN, International Marketing, 13thEdition, Tata McGraw-Hill Edition 2008(472-514)

Tapan K Panda Professor, IIM Indore. Marketing Management, Second Edition, NEW DELHI,2007, 2008(179-212).

Sak Onkvisit , John Shaw: International Marketing, Warren J. Keegan: Global MarketingManagement, Dana Nicoleta Lascu: International Marketing, Rakesh Mohan Joshi: InternationalMarketing.

Electronic book

Chandler, D. (1994), Semiotics for beginners [HTML document]. Retrieved [5.10.'01] from theWorld Wide Web, http://www.aber.ac.uk/media/Documents/S4B/

Monographs

Crystal, D. (2001), Language and the internet. Cambridge: Cambridge University Press.

Other websites

http://www.smartechindia.com/customers/lrfoods/history.html

http://www.naukrihub.com/india/fmcg/overview/bakery-products/

http://foodindianews.com:8080/foodnews/Food_News.jsp?id=104

http://www.indianfoodindustry.net/

http://www.dailybread.co.in/

http://www.bharatbook.com

http://www.icmrindia.org/free%20resources/casestudies/Makeover%20of%20Britannia-

marketing%20case%20studies.htm http://www.britannia.co.in/

http://www.britannia.co.in/BritanniaGoIndiaFeb09.pdf

http://www.timeshighereducation.co.uk/story.asp?storyCode=402802&sectioncode=26

Economic and Social Research Council research ethics framework: www.esrcsocietytoday.ac.uk/(Enter search for "ethics framework".)

http://www.niehs.nih.gov/research/resources/bioethics/whatis.cfm

http://www.cwu.edu/~jefferis/PEHL557/pehl557_ethics.html................imp

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