marketing strategy of britannia company

73
INDEX 1 SR.NO TITLE PAGE NO 1 Introduction 2 Objective Of The Study 3 Rational Behind The Study 4 Research Methodology 5 Review Of Literature 6 Data Analysis 7 Finding 8 Conclusion 9 Bibliography

Upload: sanket-pawshe

Post on 08-Apr-2016

227 views

Category:

Documents


32 download

DESCRIPTION

its project related for sub. strategic management

TRANSCRIPT

Page 1: MARKETING STRATEGY OF BRITANNIA  COMPANY

INDEX

1

SR.NO TITLE PAGE NO1 Introduction

2 Objective Of The Study

3 Rational Behind The Study

4 Research Methodology

5 Review Of Literature

6 Data Analysis

7 Finding

8 Conclusion

9 Bibliography

Page 2: MARKETING STRATEGY OF BRITANNIA  COMPANY

CHAPTER 1

Britannia industries ltd,unit rudrapur was established on 1st April 05 in the area of

approx.20 acres mainly for the purpose of production of biscuits this is almost free

from all taxes.

In Britannia industries ltd there are many departments which are inter connected to

each other and work together for the welfare of the company as the whole. There is

well built communication system inside a company which help doing work on time

with efficiency and effectiveness.

2

INTRODUCTION

Page 3: MARKETING STRATEGY OF BRITANNIA  COMPANY

The department includes quality assurance, store, production packaging and

dispatch, maintenance, engineering, purchase, finance, legal and administrative and

personal training.

History

Britannia industries limited Company Established in 1918 as a small bakery

in ,kolkatta with an initial investment of RS. 295. The Company was incorporated

on 21st March, as a public limited

company under the Indian Companies Act, of 1913. A new factory was established

at Kasara Pier Road in Mumbai. Britannia Industries Limited (BIL) is a major

player in the Indian Foods market with leadership position in Bakery category.

Product ranging from the healthy and economical tiger biscuits to the more

lifestyle-oriented milkman cheese. Britannia is the first bakery company in India to

remove transfers from its biscuits Britannia innovates for strong presence in health

and nutrition space living up to its credo ‘’eat healthy think better’’

The Company's plants are situated in Kolkata, Delhi, Chennai, Mumbai and

Uttarakhand. . A new factory was established in the year 1924 at Kasara Pier Road

inmumbai.

During the year 1978, the company made Public issue, in that Indian shareholding

crossed 60%. Nepal during the year 1980 for the supply of know-how relating to

3

Page 4: MARKETING STRATEGY OF BRITANNIA  COMPANY

manufacturing, packaging and marketing of biscuits and selection of plant and

machinery. Britannia among Top 300 small companies. BIL was ranked 27th place

in the list of India's Fastest Growing Large Companies by Business Today.

Britannia products are exported to several countries worldwide including Nepal,

Singapore, Pakistan, Malaysia, Indonesia and Egypt England , newzealand, their

products are sold in U.S supermarkets in the foreign foods section. It is also

believed to be adding capacities at its contract manufacturing units at West Bengal,

Assam, Pondicherry, Kanpur and Nagpur Bangladesh, Gujarat, Bangalore,

Karnataka, kolkatta, Britannia was acquiring a reputation for quality and value.

Britannia brands of Biscuits, Snacks and Dairy Products reaches to around 300

homes across India, and everyone love to eat them with more happiness and

satisfaction. Britannia is an Indian company, which holds larger share in the Indian

Biscuit Market. Its brand portfolio includes Tiger, Marie Gold, Good Day, 50:50

and Treat.

4

Page 5: MARKETING STRATEGY OF BRITANNIA  COMPANY

PRODUCTS & LAUNCHES

1. 1986 - Good Day

2. 1889 – Circuit & Pure Magic

3. 1990 – Elaichi Cream, Petit Beure, Milk Bikkis & Fruit Bread

4. 1992 – Little Heart

5. 1993 – Fifty-Fifty

6. 1994 – Bakers Choice, Thin Lite

7. 1995 – Pure Magic

8. 1996 – Marie Gold

9. 1997 – Jim Jam, Tiger, Checkers

10. 1999 – Flavored Milk Brand “Zip-Sip”

5

Page 6: MARKETING STRATEGY OF BRITANNIA  COMPANY

OBJECTIVES OF THE STUDY

The objectives our project is –

To know about the status of the competitors.

To analyse the business level strategy of the company

To analyse the financial performance of the company

To know about the experts view of the company.

To determine sales activities by understanding customers business.

To analyse strengths and weakness of the company.

To know about the key employees of the company

6

Page 7: MARKETING STRATEGY OF BRITANNIA  COMPANY

RESEARCH METHODOLOGY

The study is an exercise involving estimation of parameters as regard to

organizational requirements- research was designed so as to get relevant

information that can be used for various organizational purposes.

Data sources

Primary data

Secondary data

Primary sources:

Primary data was Taken from analyzing plant plant machines. There are four plant

lines and every plant line having 4 to 5 machines. Thus the relevant information

related to the assessment parameters was helpful to know the study of machines of

production and operations.

Secondary sources:

Historical records: data regarding the origin and the history of the organization

were obtained from the historical records of the organization.

Sample size : 16 machines.(1000 packets of biscuits from each machine

7

Page 8: MARKETING STRATEGY OF BRITANNIA  COMPANY

SCOPE OF THE STUDY

The project is cover the study of training & development program at staff level at

the sidcul, rudrapur, Uttarakhand unit of Britannia industries. The department in

which survey was conducted are as follows:

Packaging dept.

Maintenance dept.

Banking section

Production dept.

The employee is different of the organization have full co –operation and support

by answering the question.

LIMITATION OF THE STUDY

The study depends on production & operation department & since them were not

willing to revel any information about their packaging system, their machinery

system so an intended errors may have crept it.

Data transparency is restricted to small sample.

8

Page 9: MARKETING STRATEGY OF BRITANNIA  COMPANY

The limitation of technique used in analysis cannot be avoided & they are felt well

a study.

Limitation of the study is up to Britannia industries ltd.

9

Page 10: MARKETING STRATEGY OF BRITANNIA  COMPANY

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 labor 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 labor 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 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

10

Page 11: MARKETING STRATEGY OF BRITANNIA  COMPANY

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 stockiest 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 labor 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 sothen the salesperson might be exhausted enough and not spend

enough time on each counter required byhim 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 then penalty ranging from

11

Page 12: MARKETING STRATEGY OF BRITANNIA  COMPANY

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.

12

Page 13: MARKETING STRATEGY OF BRITANNIA  COMPANY

ANALYSIS AND INTERPRETATION

Marketing mix

Product

Britannia good day is an augmented product. augmented products are those,

products which have additional attributes in the product to diffentiate it from the

competitors products. They try to add more attributes to improve the product and

exceed the normal expectations of buyers i.e.to delight them.britannia GOOD

DAY enjoy a fan following of customer across all ages who are loyal to the brand

and the biscuits promise of a great taste evident from the visibly abundant

ingredient like butter,cashew,pista badam,chocolate chips, nuts and dry fruits. With

richness as one of the functional facet of good day this product can be classified as

a premium segment biscuit.

Price

Pricing is one of the most important element of the marketing mix, as it is the only

mix, which generates a turnover for the organisation. The remaining 3p,sare the

variable cost for the organisation.it costs to

Produce and design a product; it costs to distribute a product and costs to promote

it. Price must support these element of the mix. Pricing a product too high or too

13

Page 14: MARKETING STRATEGY OF BRITANNIA  COMPANY

low could mean a loss of sales for the organisation. Pricing should take into

account the factors like fixed and variable costs, competition, company objectives,

proposed positing strategies, target group and willingness to pay.

Place

As biscuits need to reach the consumer at their nearest location.britannia tries to

reach the point of sale i.e. retailer, kirana shop and also big retail units like food

bazaar and even export.

Promotion

Britannia works is close partnership to promote its biscuits with retailers.

Promotion costs are shared with retailers. the more retailers sell –the more

Britannia 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.

14

Page 15: MARKETING STRATEGY OF BRITANNIA  COMPANY

BRITANNIA PRODUCT LIST AND ITS BRAND RANGE

Britannia Product focused on bringing more productive products and expanding

the market rapidly. It was started in 1892. It has a history of over 120 years and its

business has grown tremendously stepping at higher margin and satisfying

consumer needs by giving superior quality of products. Their brand name

including the features, quality, price, design etc. would help them in growth of

rapid sales and keeping regular customer and choosing their product in the market.

The products of Britannia Company were mainly consisting of Biscuits, Snacks

and Dairy Products. 

Britannia Products

The Britannia Products consists of the four sectors: 

Biscuits Sectors

Bread, Cakes and Rusk Sectors

Gift Sectors

Dairy Products

Biscuits Sectors

Britannia Biscuits is famous world-wide for its taste which is sold at a reasonable

and affordable price. Many millions of people enjoy eating biscuits which is a

15

Page 16: MARKETING STRATEGY OF BRITANNIA  COMPANY

healthy snack and which is available in all over the stores at any time, anywhere

andeveryday.

Britannia Biscuits are further classified under below sectors: 

Kids Nutrition

Treat or Luxury

Snacking

Adult Health

Kids Nutrition

Biscuits are fond of everyone, kids, adult, old or new generation. Britannia brings

wide variety of Biscuits which gives consumers to choose wide range of these

products and enjoy the benefits. 

Types of Biscuits under Kids Nutrition Sectors: Britannia Tiger Biscuits, Milk

Bikis, 

Britannia Tiger Biscuits

16

Page 17: MARKETING STRATEGY OF BRITANNIA  COMPANY

Britannia Tiger Biscuits is one of the biggest brands in the kids sector. Tiger

Biscuits was launched in 1997. The biscuits are full of nutrients like iron, calcium,

folic acid and vitamin A, vitamin D and are very essential for growing kids.

Britannia Tiger Biscuits is one of the healthy snacks for kids.

Britannia New Tiger Biscuits consists of Tiger Glucose, Tiger Krunch Chocó-chips

Cookies, Tiger Krunch Fruit & Nut, and Tiger Orange. 

The price varies from Rs 5 to Rs 15.

 

Britannia Milk Bikis Biscuits

Britannia Milk Bikis Biscuits is also one of the biggest brands in the kids sector.

Milk Bikis Biscuits was launched in 1996. The biscuits are full of smart nutrients

with four vital vitamins, iron and iodine and are very essential for growing kids for

their mental and physical development. Britannia Milk Bikis Biscuits is one of the

healthy snacks for kids as many kids dislike milk but they love to eat Britannia

Milk Bikis. 

Britannia Milk Bikis Biscuits consists of Milk Bikis Almond Cookies, Milk Bikis,

17

Page 18: MARKETING STRATEGY OF BRITANNIA  COMPANY

and Milk Bikis with Milk Cream.

The price varies from Rs 5 to Rs 25.

 

Treat or Luxury

Biscuits which consist of cookies with Almond, Butter, Fruit, Wheat, and Milk are

fond of everyone, kids, adult, old or new generation. Britannia brings wide variety

of such Biscuits which gives consumers to choose wide range of these products

and enjoy the benefits under Treat and Luxury Sectors. 

Types of Biscuits under Treat and Luxury Sectors: Britannia Cookies, Britannia

Good Day Biscuits, Britannia Nice Time Biscuits, Britannia Treat Biscuits and

Britannia Pure Magic. 

Britannia Cookies Biscuits

18

Page 19: MARKETING STRATEGY OF BRITANNIA  COMPANY

Britannia is the Top Leader in the Cookies Sectors. Britannia's latest brand which

is referred as Britannia Cookies is packed and enriched with the wholesome

nutrition of wheat, butter and milk. Britannia Cookies are available in two

delicious kinds, one with Butter Elaichiz and other with Fruit Dhamaka.

Butter Elaichiz is filled with Butter and Elaichi, and Fruit Dhamaka is filled with

fruit bits.

The price varies from Rs 5 to Rs 10.

 

Britannia Good Day Biscuits

Britannia is the Top Leader in the Cookies Sectors and God Day Biscuits is the

Top Most. Britannia Good Day was launched in 1986 which were available in two

delicious kind one with Cashew and other with Butter. In year 1989, Good Day

Pista Badam was launched. In year 2000 Good Day Chocochips was launched and

in year 2004 Good Day Choconut was launched. 

19

Page 20: MARKETING STRATEGY OF BRITANNIA  COMPANY

Britannia Good Day Biscuits consists of Good Day Butter, Cashew, Rich Butter

Cookies (Butter and Cashew), Choconut Cookies, Butter Scotch cookies, Honey &

Raisin Cookies, Chocolate   Chip , Rich Cashew Cookies ATC, and Rich Pista

Badam ATC.

The price varies from Rs 5 to Rs 50.

Britannia Treat Biscuits

Britannia Treat Biscuits were especially launched for kids of all ages in the year

2002. These biscuits are round in shapes, sizes and good exciting flavours and are

sweet, yummy in taste. Every kid in the morning prefers this as well as afternoon

snack. 

Britannia Treat Biscuits consists of Treat Jim Jim, Treat-O Vanilla, Treat Fruit

Creams, Treat Mango, Treat Orange, Treat Pineapple, and Treat Strawberry

20

Page 21: MARKETING STRATEGY OF BRITANNIA  COMPANY

 Snacking

Biscuits which are consumed as snacks are of the best products of Britannia

Company. These snacks are fond of everyone, kids, adult, old or new generation.

Britannia brings wide variety of such Snacks which gives consumers to choose

wide range of these products and enjoy the benefits under snacking sectors. 

Types of Biscuits under snacking sectors: 

Britannia 50-50

Time Pass

Little Hearts

Bourbon

The snap shot of each of these biscuits are attached for easy reference. Each of

these biscuits is briefly discussed:

Britannia 50-50

21

Page 22: MARKETING STRATEGY OF BRITANNIA  COMPANY

Britannia's 50-50 Snackuits was the latest product under snacking sector with three

unique international flavors- Snackuits Italiano Pizza, Snackuits Swiss cheese &

Chilly and Snackuits Chinese Hot & Sweet. 

 

Time Pass

Britannia introduced a new product mainly for youth and is referred as the best

snack which is termed as "Fried is gone, baked is on". The price is very reasonable

which Rs 5 – Rs 10. It launches three exciting flavours which is Mindless Masala,

Loafer Lemon and Tapori Tomato. Further, it has more excitement by launching

new product under the same name which is Time Pass Classic Salted and Time

Pass Nimkee. 

Little Hearts

22

Page 23: MARKETING STRATEGY OF BRITANNIA  COMPANY

Little Hearts was launched in 1993 mainly for growing youth segment. This was

Britannia's first product which was sold in pouch packs. This product was in great

demand with special taste experience that the youth segment were impressed about

this product. It is rightly said that each bite of Little Hearts melts in the mouth

within a second time.

Bourbon

Britannia presents yet another brand of Chocolate Biscuits which is thick, rich and

delicious which are packed with crunchy chocolate with sugar and is called as

"Bourbon Biscuits". The search of this biscuit began in the year 1955.

 

23

Page 24: MARKETING STRATEGY OF BRITANNIA  COMPANY

Adult Health

Biscuits which are consumed by adult which are good for health as it consists of

vital nutrients and vitamins, oats, Honey, Fibre, Ragi, 5 Grain, and Multigrain and

are referred as the best products of Britannia Company. Britannia brings wide

variety of such biscuits which gives consumers to choose wide range of these

products and enjoy the benefits under adult health sectors. 

Types of Biscuits under Adult Health sectors: 

Britannia Marie Biscuits

Britannia Nutri Choice Biscuits

Britannia Marie Biscuits

Britannia Marie Biscuits is successful with its balanced taste, crispy and lightness

along with added vitamins and minerals and is rightly called as "healthy tea time

biscuit". This Biscuit is top amongst the Britannia Biscuits of brand. 

This biscuit is further classified into brand called Vita Marie Gold and Vita Marie

Honey Oats Biscuits. 

24

Page 25: MARKETING STRATEGY OF BRITANNIA  COMPANY

Bread, Cakes and Rusk Sectors

Bread, Rusk sectors

Bread and Rusk which are consumed by adults, kids and by all generation of

people consists of vital nutrients and vitamins, Honey & Oats, Multi-Grain, Whole

Wheat, and Multi-Fiber. 

Britannia brings wide variety of such Bread and toasted Rusk which gives

consumers to choose wide range of these products and enjoy the benefits under

Bread and Rusk sectors. 

Britannia Bread

Britannia Toasted Rusk

Britannia Bread

Britannia Bread launched Health Breads in Delhi on Nov 14, 2011. This new range

of breads consists of Honey & Oats Bread, Multi-Grain Bread,

25

Page 26: MARKETING STRATEGY OF BRITANNIA  COMPANY

100% Whole   Wheat   Bread  and Multi-Fiber Bread. Upto the year 1958, there were

no consumption of bread and there was only one unit in Delhi. Further in the year

1963, Britannia was the first branded sector in the bread market which Types of

Bread:

Cake sectors

Every kid, adult and all generation of people love the slice of cake which are

yummy and sweet. These are fast moving products and are consumed very faster

once purchased from the market. The prices are very reasonable and are affordable

by all generation of people. 

Types of Cakes:

Bar Cakes  

People who are very busy during the day, this Bar cakes are very helpful for them

which comes as a Soft, and delicious to consume and termed as the ideal snack

during any time. It has many flavours such as Fruit, Butter Sponge, Chocolate,

Pineapple, Milk, Vanilla, Chocolate and Orange. 

Cup Cakes 

This is best product in the Britannia's Cake sector as this is preferred by all

generation of people which is served as the best and easy breakfast for those who

26

Page 27: MARKETING STRATEGY OF BRITANNIA  COMPANY

don't have much time to eat at home. This cup cake can be consumed during any

place, any moment in the car or in the movie place etc. 

Chunk Cakes  

This cake is soft and juicy with real fruit that makes any one to bite them and ready

to consume it at any place or office. The price is very reasonable which is ranging

from Rs 5 to Rs 6.

Britannia Veg Cakes  

This is the best product for those who are vegetarian and this is without egg. This

is eggless cake which can be consumed by those who are not non-vegetarian. This

is the best product for them and it is a great tribute for each and every vegetarian

people. It has flavour which is Twisty Fruity Price and sizes: Rs. 15/- for 75 gm

pack.

 

Gift Sectors

Britannia introduced 'Shubh Kaamnayein range' which allows exchange of gifts

and good wishes to all your relatives, friends and family members. This was during

festival reason during the year. Main festivals consist of Diwali, Christmas,

27

Page 28: MARKETING STRATEGY OF BRITANNIA  COMPANY

Ganesha Festival, New Year Eve. 

This gift consists of Premium Assorted Cookies, Cookie Delight, Meetha Namkeen

2, Healthy Gifts, Royale Special, Choco Delight 2, Veggie Delight, Meetha

Namkeen 1, Choco Delight 1, Assorted Biscuits etc. 

 

Dairy ProductsBritannia Dairy Products is famous world-wide for its taste which is sold at a

reasonable and affordable price. Many millions of people enjoy eating butter, ghee,

milk, cheese, dahi, health drink, choco milk, and badam milk which is a healthier

drink and which is available in all over the stores at any time, anywhere and

everyday.

Britannia Dairy Products are further classified under below products: 

Cheese

Butter

Ghee

Milk

Gourmet Cheese

Dahi

28

Page 29: MARKETING STRATEGY OF BRITANNIA  COMPANY

Dairy Whitener

Actimind

TigerZor Choco Milk and Badam Milk

Britannia Cheese Product

Britannia Company has the largest range of cheese in India. The cheese products

are made with high-quality and cow's milk. This cheese is very tasty to eat and a

healthier food for the entire family. Britannia Cheese is available in Blocks, Cubes,

Spreads, Slices and types of cheese sold are Pizza Cheese, Low-fat cheese and

Cream Cheese.

 

Britannia Butter Product

Britannia Butter is yellow in colour with great taste and can be spread over even

after refrigerating it. Britannia’s Butter is made from pure cow’s milk. It can be

used as a spread on bread, or on parathas, or in baking or frying. Britannia’s Butter

is available in two pack of 100gm and 500gm each. 

29

Page 30: MARKETING STRATEGY OF BRITANNIA  COMPANY

 

Britannia Ghee Product

Britannia's Ghee is well known for its purity and taste and famous all over India. It

is the only national brand in ghee sector for Britannia. The Ghee made is pure and

from cow's milk which is enriched with Vitamin A, E etc. This Ghee is available in

packs, pet jars, pouch refills, cartons and tins. It is said that Britannia Ghee can be

stored for a year without refrigerating it and the Ghee will be pure and nature. 

 

Britannia Milk Product

Britannia brings an exciting surprise by introducing Milk products. The milk

available is toned and skimmed milk slimz made from fresh cow's milk. For every

sip you have Britannia Milk brings goodness and freshness with the promise of

purity and good health and fitness. 

30

Page 31: MARKETING STRATEGY OF BRITANNIA  COMPANY

A Britannia new product which is Slimz Milk is with Zero percent Fat and Zero

percent Cholesterol. Every slip brings you stay fit and feel good and healthier. 

Britannia Dahi  

Britannia Daily products introduce Dahi to bring tasty and sweetness in every sip

and to make the entire family happy. This dahi is made from fresh milk and is

100% pure and healthy. No preservatives, nor colour or any flavours are added in

it. This dahi is thick and tasty to consume the whole packet within a second's time. 

31

Page 32: MARKETING STRATEGY OF BRITANNIA  COMPANY

DATA COLLECTION

The data collection method used was none other than survey method which is

usually incorporated for collection of raw information. The survey method is

advantageous because it help to collect a great deal of information about an

individual respondent.

Survey

The type of survey undertaken was that of sample type keeping in consideration

the time constraint and paraphemalic, besides the viability of census survey. The

sample survey thus being taken to the right path to reach the desired destination

was carefully planted to convert of the operation by using selected samples.

Statistical tools

The tool for obtaining the information was questionnaire. A structurered

questionnaire was administered. The questionnaire was designed in the view both

major objective of study.

LIMITATIONS

The study depends on production & operation department & since them

were not willing to reveal any information about their packaging system,

their machinery system so an intended error may have crept it.

Data transparency is restricted to small sample.

The limitation of technique used in analysis cannot be avoided & they are

felt well a study

Limitation of the study is up to Britannia ltd.

32

Page 33: MARKETING STRATEGY OF BRITANNIA  COMPANY

LITERATURE REVIEW :

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 offers or otherwise it is 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 bread

objectives of the marketing approach t accomplish the bread objectives of the

marketing plan. The various process of marketing strategy are given below.

1. Selecting largest markets segmentation

2. Positioning

3. Product

4. Price

5. Place

6. Promotion

7. Research and development

8. Marketing research

33

Page 34: MARKETING STRATEGY OF BRITANNIA  COMPANY

Marketing strategy

Marketing is not Euclidean geometry a fixed system of concept .rather marketing is

one of the dynamic fields with in the management area. The market faces

continually a new challenges everyday and companies must respond to it is not

surprising that new market idea keep surfacing to meet new market place

challenges.

Following strategies adopted by the organisation

A strong quality of the product and customer satisfaction :

Customer always believe in good quality of the product. in my survey I

found that in percentage term more people is quality conscious and not price

concesius.customer satisfaction is very important part of the organisation

that at any cost they have to fulfill.

A growing relationship with customer and customer retention :

Nowadays a good relation with customer is very important for

organization .sale is totally depending on the relation with the customers.

customers retention is also major aspect for growing business. It means keep

the old customers and try make new customers.

Focus on competitors activity :

Every organisation should must be careful about it’s competitors step,

because they can disturb the growing sales process of the organisation.

34

Page 35: MARKETING STRATEGY OF BRITANNIA  COMPANY

SWOT ANALYSIS

A. strengths

contract manufacturing model

What makes Britannia unique amongst its peers is it contract manufacturing model.

The company outsources entire production of bread, cakes & Rusk sold by it.

Around 76 percent of its biscuits are also produced by third party units this strategy

has helped tiger brand in creating to growing market needs quickly and at lowest

price possible.

strong brand positioning as a health force biscuit

Tiger as a brand has been a roaring success. Within a year of launch. Tiger glucose

and tiger cashew have,together, achieved a turnover of RS 100 crore and a market

share of 30 percent in the glucose biscuits segment.at the low end price points

targeting the mass market, tiger gucose(RS5 for a 100gm pack) and tiger cashew

badam (RS 6 for 75 gm) are positioned as healthforce biscuit.

quality accreditations

Other than cremica ‘priya gold and ‘Britannia tiger’, none of the other brands carry

the ISI mark. in a comparative test study done in 2003 by ‘voice’s voluntary

35

Page 36: MARKETING STRATEGY OF BRITANNIA  COMPANY

organisation in interest of consumer education, it was revealed that only the claim

of Britannia tiger as a health product matched the actual content of the biscuit.

Various tigers

Britannia has gained market share for its Tiger brand by introducing different

variants catering to all segments of society viz. glucose, cream(Orange, Elaichi,

Chocolate, Rose Milk and Kesar), coconut, Chota-Tiger and recently-launched

banana variant. Enhancing the portfolio of varieties under the Tiger brand is

intended to give consumers more reasons to buy.

Alternative Distribution and Marketing strategies

Along with normal distribution, Tiger is also focusing on bulk supplies at railway

platforms, canteens and BPO offices, thereby increasing its reach across

regions .Also launched "Chota-Tiger"(smaller packs) with two to three biscuits to

facilitate quick eating at consumption avenues. Separate market structure and sales

force is devoted to handle these alternative distribution.

Excise duty holiday

The combined taxes, central-vat, excise & local taxes used to amount to 26% of

total cost of Tiger biscuit. Recently government gave relief to biscuit industry by

exempting the biscuit variants with cost below 100per kg from excise duty. This

measure has come as a great relief to Tiger as it falls under the privileged segment.

36

Page 37: MARKETING STRATEGY OF BRITANNIA  COMPANY

Value for Money

Tiger biscuit is positioned at low-end price-points (RS 5/ RS10) targeting the mass

market. Tiger biscuit has maintained quality at low prices, maximizing value for

the customer. Tiger had maintained the same price for its flagship ‘glucose’ brand

for several years to enhance customer satisfaction.4.2 Weakness1. Brand name

tussle 10 .

Fulfill one of our basic requirement among air ,water,food,shelter

Widely accepted in all generations

Easily available in various forms

Provide good instant remedy for hunger in the form of readymade food

Preserves the non seasonal food and makes it available all throughout the year

WEAKNESSES

Brand name tussle

The relation between Britannia’s major stake holders -- Wadias and Danone,

hasturned sour since 2005--06 over the alleged unauthorized use of the Tiger brand

byDanone in five countries; viz. Singapore, Pakistan, Malaysia, Indonesia and

37

Page 38: MARKETING STRATEGY OF BRITANNIA  COMPANY

Egypt.Britannia has filed a case against Danone at Singapore court regarding the

same.

Low profit margin

After a drop in operating profit margins to 6% levels in 2006-07 from over 11% in

theprevious year. The current input prices are still significantly higher than

previousyear. Britannia will have to neutralize the adverse impact of the same

through acombination of improved realization per pack, operating efficiencies and

mix improvement.

Low penetration in sub-urban and rural sector

Although Britannia has a large established distribution network, but still there is

ahuge unorganized sector(40% of total Indian biscuit market) operating in sub-

urbanand rural areas. These regional players mainly eat onto the potential market

pie of Tiger biscuits, as it is the brand primarily into mass-market’s) Lion’s share

(70%) of Britannia’s revenue comes from metros

Decrease nutritional value

Increases the cost of food product

Industry and technology requires high investment

38

Page 39: MARKETING STRATEGY OF BRITANNIA  COMPANY

Opportunities

Cost-control

Cost-cutting measures, especially in the areas of manufacturing, logistics and

distribution, will pave the road for increased profit margins. Rising inflation and

increased input prices have been pushing profit margins for last couple of years.

So, employing various strategies to control cost will help in meeting financial

objectives.

Untapped Market Potential

Indies per capital biscuit consumption is still at about 1 kg, as against 2.5 to 3 kg

indri Lanka, 5 kg of Europe and 7.5 kg of USA. So, in future we can expect per

capita 11 consumption to grow to at least 2.5 kg. This entails to a huge untapped

potential market.

International Market

Although Britannia exports its various products to countries including the US,

Ghana, Seychelles, Singapore, Oman, Saudi Arabia, United Arab Emirates, Qatar,

Bahrain, and Kuwait, but Tiger is exported to only Sri Lanka, US and AUS. So, the

existing distribution network .

39

Page 40: MARKETING STRATEGY OF BRITANNIA  COMPANY

Growth Potential

The company is investing RS.130 crores from its internal cash reserves towards

capacity addition. It is also believed to be adding capacities at its contract

manufacturing units at West Bengal, Assam, Pondicherry, Kanpur and Nagpur.

The company has also been following the inorganic route of expansion quite

actively in the recent past. It made its first international acquisition in March 2007

by buying 70 per cent stake in Strategic Food International Co LLC, Dubai, a

leading company in the biscuits and cookies segment in the GCC (Gulf

Cooperation Council)markets) Biscuit industry in India in the organized sector

produces around 60% of the total production, the balance 40% being contributed

by the unorganized bakeries. With increased production capacities Tiger will be

able to capture part of unorganized sector be leveraged to export in these countries.

Increase economy of India

Generate employment opportunity

Good quality of Goods.

Provide competition to foreign companies

Improve standard of living

Flow of foreign reserve and funds for the govt.(taxes)

THREATS

40

Page 41: MARKETING STRATEGY OF BRITANNIA  COMPANY

. Increasing Inflation

Food inflation is in excess of 10 per cent and input-cost inflation will be more

severe in 2008-09. Inflation will remain the biggest challenge for the next year.

Increasing prices of inputs - 20-25% increase in inputs in last 2 yes Prices of food

grains aresoaring wheat have increased from 650 to 980 per quintal.

Bleak near-

future industry outlook The growth in the biscuit market in India has reflected a

decline in the last fiscal. This can be attributed to increasing input prices and rising

inflation. Also, oil prices have reached $144/barrel. All these factors indicate that

in near-future industry has rough ride ahead.

Competition

Strong competition from ITC, Parle, Sara Lee, United Biscuits, Kellogg, and

Nestle India ensures that it does not take its leadership, in the domestic market, for

granted. Specifically in Glucose biscuit segment, Tiger faces stiff competition from

Parle Products Parle-G biscuits.

Price sensitive market Tiger biscuit operates in the low-price segment, which is

catering to a very price sensitive customer. This leads to very low margins and

hence very less space for innovation. Any increase in price can lead to substantial

market-shift.

41

Page 42: MARKETING STRATEGY OF BRITANNIA  COMPANY

Customer behavior

shift Biscuit industry in low-price segment faces stiff competition from other foods

category viz. nankeen, chips etc. These are also in the low price segment(RS 5-

10category) and have the advantage of lower taxes. VAT on this food segment is

4%while Biscuit segment is levied a VAT of 12.5%. Lower taxes provide for

higher profit margins and stiffer competition in supply chain.

COMPETITORS

Generally all organization has competitors in the market. a particular organization

always comprises with other same business and according to market share we

identify the brand of the 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 really doing well

and its performance is on surprising level. During the field work and after intensive

study it was found that main competitors of priyagold biscuits are Britannia as the

market leader.

In my provided area the share of the market is as follows.

Britannia 48%

Priyagold 20%

42

Page 43: MARKETING STRATEGY OF BRITANNIA  COMPANY

ParleG 16%

Pure food 8%

Others 8%

When we compared with other then we follows the quality, price, distribution

system, promotional strategy etc. of the competitors Britannia in his area is doing

well.

So this is the comparison with other biscuits brand. According to our finding we

found that Britannia is the market leader followed by Britannia biscuits.

These two biscuits comprises the lions share in the 2,002 crore biscuits industry.

SALES OF BRITANNIA COMPANY

Britannia gross sales turnover increased to RS 18,179 in 2005-06 from RS 16,154

in the previous year, registering a growth of 13%.operating profit at RS 1,763

increased by 7%,profit before tax and exceptional items at RS.1,958 declined by

19% against 2004-05, impacted by the profit on sale of long term investments that

accrued to other income last year.

43

Page 44: MARKETING STRATEGY OF BRITANNIA  COMPANY

The company achieved these result despite significant increases in input cost,

particularly suger, fuel and oils, coupled with aggressive pricing in the industry.

Your company focused initiatives on commercializing market place opportunities,

supply chain efficiencies and overall cost management resulted in its top line

growth and profitability. Operating margin at 10.3% in 2005-06 compared with

10.9 in the previous year was impacted by the inflation in input costs.

Despite stiff competition ,your company stabilized and held its overall market

share at 31.7% in volume and 38.8% in value for the last year.

Exports turnover during the year was RS 111.71 against RS.71.65 in 2004-05 a

growth of 56%.

PROFIT OF BRITANNIA COMPANY

44

Page 45: MARKETING STRATEGY OF BRITANNIA  COMPANY

Britannia has registered a turnover of Rs 21,993 million for the year ended 31st

March 2006-07. Britannia has posted Net Profit to the tune of Rs 1076 million for

the year ended 31st March 2006-07. - Britannia Industries Ltd has recorded an

increase3.94 per cent increase in net profit to Rs 43.45 crores during the first

quarter of the financial year till June 2012.

Britannia Q1 Consolidated Revenue growth of 14% with 93% growth in Net Profit

Britannia Industries Ltd (BIL), India’s leading Food Company, for the 1st Quarter

ending June 2013, reported an increase of 14% in its Consolidated Revenue of Rs

1,539.6 Crores and a Net Profit increase of 93% at Rs 89.5 Crores. Operating

Margin at 7.7% increased significantly, compared with 4.7% in Quarter 1 of last

year, despite an increase in brand investment at 9.6% of Revenue, compared with

8.4% last year.

Britannia also reported an increase of 15% in its standalone revenue of Rs 1,403.4

Crores and a 99% increase in Net Profit, at Rs 86.3 Crores. Profit from Operations at

Rs114.4Crores,increased93%.

45

Page 46: MARKETING STRATEGY OF BRITANNIA  COMPANY

FINDING

The survey and analysis of questionnaire has revealed the following findings

From the study it is that 50% of respondents falls below age group of

20.33% of respondents falls 20-30.17% falls between 31-40.

From the study it is observed that 51% of respondents eat packaged snacks

43% of respondents prefer biscuits 4% & 3% of respondents will go for

savories & bread slices.

From the study majority of the respondents are interested to buy cream

biscuits & some of them are buy salt or milk biscuits.

From the study it is clear that majority of the respondents are aware of sum

feast Marie light outs biscuits & some of them are not aware.

From the study it is found that majority of consumers buy sun feast Marie

light oats from the super market.

The study revealed that ITC is the first movers to produce oats biscuits

46

Page 47: MARKETING STRATEGY OF BRITANNIA  COMPANY

CONCLUSION :

After going thick on the thing, now time is to make a complete picture. While

making a product a stop keeping unit of the shop retailers thinks about the gross

margin return on investment and they promote the brand which provides them

highest. They except return in the form of profit margin, company schemes,

window display and references of the shop. Among these company schemes makes

the differences and are the highest sources of motivation after profit margin.

Retailing demands a constant push from the company.

Marketers need 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 demanded 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 retailer so that they may exchange views with the company

and help in understanding consumer behavior.

47

Page 48: MARKETING STRATEGY OF BRITANNIA  COMPANY

BIBLIOGRAPHY

Books

Author Philip Kotler

Title Marketing Management

Place Of Publication Prentice Hall Of India Ltd.New Delhi

Date Of Publication September

Magazine

Author Murthey E.N.

Title Analyst

Date Of Issue July 2006

Internet

Name Of Site Www.Britannia .Co.In

48