Professional Documents
Culture Documents
PROJECT BY
RITESH WADHWANI
T.Y.B.M.S
PROJECT GUIDE
RAJESH SONKAR
SUMBITTED TO:
UNIVERSITY OF MUMBAI
2009-2010
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Britannia
DECLARATION
SIGNATURE OF STUDENT
RITESH WADHWANI
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Britannia
CERTIFICATE
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Britannia
ACKNOWLEDGEMENT
Last but not least, I would like to thank my parents for giving the
best education and also for supporting.
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Britannia
TABLE OF CONTENTS
.
1. INTRODUCTION TO BRITANNIA 7
2. BRITANNIA IN A NUTSHELL 11
3. THE STRUCTURE OF INDIAN BISCUIT MARKETS 20
4. BRITANNIA THE BISCUIT SEGMENT 24
5. BRITANNIA - THE LAUNCH OF VARIOUS PRODUCTS 25
6. BRITANNIA FINANCIAL STATEMENT 28
7. MANAGEMENT DISCUSSION AND ANALYSIS 34
-ANNUAL REPORT
8. BRITANNIA – MARKETING 39
INNOVATIONS
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Britannia
COMPETITOR – PARLE
21. BRITANNIA - SWOT 80
22. RECOMMENDATIONS 85
23. BIBLIOGRAPHY 87
AN INTRODUCTION TO BRITANNIA
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Britannia
In 1977, the Government reserved the industry for small scale sector,
which constrained Britannia's growth. Britannia adopted a strategy of engaging
contract packers (CP) in the small scale sector. This led to several inefficiencies
at the operating level. In April ’97, the Government dereserved the biscuit sector
from small scale. Britannia has expanded captive manufacturing facilities and
has modernized and upgraded its facilities in the last five years. It has also
forayed into the Dairy Business with the launch of Cheese, Butter, Ghee, Dairy
whitener and flavored milk products.
Britannia is the market leader in the organized biscuit and bakery product
market in India. They are the only Indian biscuit company with a presence
across all segments, from Glucose, Salted, Arrowroot and Premium Cream
Biscuits. Biscuits contribute 84% of Britannia's total turnover. Other products
include bread (6 per cent) and cakes (2 per cent). Britannia diversified into dairy
products in 1997 with processed cheese and dairy whitener. The portfolio was
expanded with the launch of butter, pure, flavoured milk in tetrapacks and UHT
milk. Dairy products account for 8 per cent of the company’s total turnover. Over
the years, Britannia has trimmed down its wide product portfolio and focussed on
value-added instead of low-margin products. The company divested a range of
unrelated business interests in soyabean extraction, edible oils, export of
cashewnuts and shrimp, granites and software. The company rationalised its
products portfolio by reducing the products from 35 to around 25.
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Britannia
Britannia has share of 20 per cent in the biscuit market. In the organised
biscuit market, the market share is higher at 40 per cent. The company claims a
share of 33 per cent of the organised cheese market and 15 per cent of the milk
powder.
Plant locations
Competitive position : The entry of new MNC’s have not posed a direct
threat to Britannia, as these MNC’s have positioned their brands in the
premium/health segment. Britannia has maintained market leadership with a 40%
volume share and 48% value market share in the organized sector. FMCG major
HLL is expected to venture into the segment. Britannia has been aggressive in
new launches and marketing during the last 2 years anticipating the competition.
It has also recently acquired a stake 49% stake Kwality Biscuits, gaining a.
strong foothold in the southern market
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Britannia
the only two players with a national presence in packet slice bread segment.
There are several other regional players who have significant market shares in
their respective local areas. Britannias’s bread business has been slowly
degrowing and registered a 9.4% yoy volume degrowth in FY01.
Dairy : India has emerged as the largest milk producing country in the
world manufacturing 81mn tons of milk pa. The country has one of the largest
livestock populations of the world and this industry plays a crucial role in terms of
providing income to around 70 million farmers in 500,000 villages. The top 6
states viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and
Gujarat account for 58% of India’s milk production. The market size of milk in
India is worth Rs 45,000 cr and more than 90% of the market is unorganized.
Britannia has forayed into this huge market under a brand called ‘Milkman’.
Britannia’s dairy business has been growing at a fast pace on the low base.
Volume growth was 50% and value growth was 47% in FY01. In value terms the
Dairy business contributed to 10% of turnover in FY01. Prior to the entry of
Britannia, the organized market for dairy products like butter and cheese was
dominated by the regional milk cooperatives, such as Amul, Vijaya, etc. Imported
brands are also freely available in the country today. In the organized domestic
segment, Amul remains the dominant player and will continue to be a stiff
competitor, given its sourcing advantage and market savviness. Significant entry
barriers exist, but once the network is in place, it is a cash generating business.
The dairy market offers long-term opportunities for organized players such as
Britannia. Britannia outsources its milk requirement from Dynamix Diary in
Maharashtra and Karnal Dairy In Haryana.
Operating margins have been improving despite the fast pace of new
product launches in the last 2-3 years. Rationalization of manufacturing
operations, and greater contribution of higher margin dairy products have both
contributed to the margin gains. Britannia has decided to hive off its dairy
business into a joint venture with the New Zealand based Fonterra Cooperative.
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Britannia and Fonterra will each hold 49% of the Rs2.25bn equity, while the
balance 2% will be held by business associates.
BRITANNIA IN A NUTSHELL
1918
1921
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Britannia
1924
- A new factory was established at Kasara Pier Road in Mumbai. In the same
year, the Company became a subsidiary of Peek, Frean & Co. Ltd., U.K., a
leading biscuit manufacturing company, and further strengthened its position by
expanding the factories at Calcutta and Mumbai.
1939-45
- A large part of the Company's production was diverted to war effort on account
of World War II and at times as much as 95% of the total capacity was booked
for the production of "Service Biscuit".
1951
- 19,779 Equity shares issued to acquire the Delhi Biscuit Co. Ltd. In August
1,53,234 Bonus equity shares issued in the proportion 1:1.
1952
- The Calcutta Factory was shifted from Dum Dum to spacious grounds at
Taratola Road in the suburbs of Calcutta. During the same year automatic plants
were installed there and later in Mumbai in 1954.
1954
- The development of high quality sliced and wrapped bread in India was
pioneered by the Company and was first manufactured at Delhi.
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Britannia
1961
- Manufacture of bread was started in Mumbai and a new bread bakery was set
up at Delhi in 1965.
1966
- In May 1966, 3,06,468 Bonus equity shares issued in the proportion 4:9.
1968
- On 14th May, 6,64,014 Bonus equity shares issued in the proportion 2:3.
1970
1976
1978
- After the issue of shares to the Indian public, the non-resident holding in the
Company was reduced to less than 40%.
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Britannia
1979
- With effect from 3rd October, the name of the Company was changed from the
Britannia Biscuit Co., Ltd., to Britannia Industries Ltd.
1980
1982
1986
- The turnover increased by 19.4% over the the previous year to Rs 192.15
crores. Sales of biscuits, in terms of volume, registered a satisfacotry growth.
"Good Day", a new biscuit launched during the year met with good market
response.
- Production of bread at Delhi unit was adversely affected due to launched pure
refined cooking oil under the brand name of "Vital".
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1987
1989
1990
1991
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Britannia
- The Company launched two new speciality brands viz., Britannia milk bread
and Britannia brown bread in Delhi and extended nationally its main brands Petit
Beurre and elaichi cream.
- On 17th August, the Company handed over to SM Dychem Ltd, its soya unit at
Vidisha, MP.
- The Company proposed to invest in the equity capital of Britco Company Pvt.
Ltd., a joint venture with JMRPCO Ltd., Hongkong, for manufacture of beverage
bases and essence for Coca Cola, Fanta & Sprite and to export processed snack
foods.
1992
- The Company launched a new brand of biscuit, namely `Little Hearts' which
carved a niche in the market.
1993
- The Company launched new brand of biscuit, namely, `Fifty-Fifty'. Bread market
remained depressed. To revive the market, the Company launched a speciality
brand viz. `Premium Bake' in both Delhi and Mumbai. During the year, the
company has started exporting Basmati Rice under the name `Britannia Indian
Pearl'.
1994
- During the year, the bakery division launched `Bakers Choice' a sweet biscuit
and `Thinlite' a light semi-sweet biscuit aimed at fitness concious consumers.
1995
- Under the `Pure Magics' Umbrella, the company launched a new sandwich
cream biscuit with two-in-one flavour viz. double cream and this was well
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Britannia
received in the market. In the cake market, under the premium segment, the
company launched with Groupe Danone's technological input a Swissroll Cake
"Mini Roule" which was also met with good response.
1996
- Mariegold biscuits registered quantum growth in volumes and Milk Bikis milk
cream launched during the year was well received. Despite general slow down
in the economy the company's profits improved.
1997
- The Biscuit industry has been dereserved which would not only remove
restriction on increasing capacity but would also provide opportunities of growth
through new products and efficient production systems. The Company undertook
to diversify into Cheese and Dairy Whitner.
- The Company launched `Tiger' range of biscuits for mass market category,
`Jim-Jam' and ` `Chekkers' in the premium segment. The Company also
launched Butter in Delhi during the year.
- Britannia Industries (BIL) is one of the largest bakery in the private sector and a
household name in food products.
- Britannia Industries Ltd (BIL) will shortly enter the cheese and milk products
market with an alliance proposed between itself and the Mumbai-based Dynamix
Dairy Ltd.
- Britannia Industries Ltd is all set to launch a new corporate identity and a total
revamp of its product portfolio, with strategic inputs from an international strategic
design and brand repositioning company - Shining Strategic Design. 1998
- Food major Britannia Industries Ltd (BIL) has signed a wage agreement with
the Maharashtra General Kamgar Union (MGKU), providing an average wage
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Britannia
increase for 1,000 workers employed in the biscuit manufacturing unit at Reay
Road, Mumbai.
- The company has launched Half/Half, a soft cake filled with cream in two
variants, chocolate-vanilla and vanilla-orange. Half/Half comes in a twin-cake
pack (Rs.6) and a tray pack containing five cakes.
- Britannia Industries Ltd has launched a festival offer for Britannia Dairy
Whitener in Kerala.
- A Ind AAA rating has been signed to the Rs.100-crore secured non-convertible
debenture issue from Britannia Industries Limited (BIL).
1999
- Britannia Industries Ltd has rolled out its flavoured milk brand `Zip-Sip' in
tetrapaks. Zip-Sip has been launched in Mumbai and some markets in the South.
- Britannia Industries, launching the country's first branded flavoured milk is
another step towards its goal of becoming a dairy-products giant.
2000
- Britannia Industries, in its second coming in the Indian dairy market under the
`Milkman' brand, is introducing a range of products many in desi flavours to woo
the Indian consumer.
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- Britannia's Milk Bikis Funland biscuits an innovative extension of the Milk Bikis
brand.
- The Company has become the first company to take its products to the Net in
the form of a video file.
- Britannia Industries has launched Britannia Milkman Butter, a product under the
Milkman brand.
- The Company has appointed Tata Energy Research Institute (Teri) for a power
audit.
- FITCH rating India Pvt. Ltd has reaffirmed the Ind AAA rating assigned to the
Rs 1000 million non convertible debenture program of Britannia Industries Ltd.
- The Company has lauched two new dairy products Milkman Cold Coffee and
Milkman Sweet lassi.
2001
- Biscuits major Britannia Industries will fund its in-principle agreement to acquire
49 per cent of Kwality Biscuits through internal accruals.
2002
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Britannia
-Britannia Industries Ltd announced on March 26, 2002 that it has entered into a
joint venture with the Fonterra Cooperative Group, New Zealand's biggest
company and one of the leading diary co-operative groups in the world.
2003
2004
- Vinita Bali has been appointed as the new chief executive officer of Britannia
Industries Ltd.
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The reasons for this being: 1) The opening up of the sector (till 1997,
manufacturing was reserved for the small-scale sector), which had resulted in a
flurry of multinationals like SmithKline Consumer, Kellogg and Sara Lee entering
this sector.
Britannia Industries and Parle Products are still the predominant national
players. The other organised players include domestic players like Bakeman’s,
Champion, Priya , along with the multinationals continue but as relatively small
players.
The influence of promotions and new launches have helped the biscuit
market grow.
The biscuit industry is divided into two broad segments: core and
non-core. While Glucose, Arrowroot, Marie and Milk biscuits belong to the core
segment, the non-core segment has a massive portfolio of cookies, creams, non-
salt crackers, salt crackers, wafer creams (this segment also includes gift packs
and assorted biscuits).
Volumes had a similar tale to share. Volume growth for core biscuits like
Parle-G, Britannia Tiger, Kellogg’s Glucose, Bakeman’s English Marie and others
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Britannia
managed a CAGR of 10.10 per cent in the five-year period between 1997 and
2001, the impressive spread of cream biscuits to cookies from non-core brands
crumbled and grew at barely 6.61 per cent.
However, by the end of 2001, the Glucose category had nearly doubled in
terms of value contribution to touch Rs 977.14 crore. And today Glucose biscuits
contribute 67 per cent of the core biscuit segment valued at Rs 1,458.41 crore.
Milk biscuits in the core biscuit segment and cream biscuits in the non-
core biscuit segment have shown a decline in contribution. In 1997, milk biscuits
contributed 17 per cent or Rs 149.95 crore to the core biscuit segment. In 2001,
milk biscuits made up just 10 per cent or Rs 145.8 crore of a Rs 1,458-crore
segment.
For cream biscuits the slide has been similar. In 1997, cream biscuits
contributed 23 per cent or Rs 139.79 crore to the non-core segment valued at Rs
607.79 crore. However, in 2001, though the actual contribution from cream
biscuits increased to Rs 183.91 crore, it was just 19 per cent of the total non-core
segment valued at Rs 967.97 crore.
The decline in the cream and milk segments has been chiefly due to the
lack of push by players in these two segments. Another recent trend has been
that PoPs (point of purchase) displays and advertising in the biscuit market have
been directed more at cookie types of biscuits than any other types.
While both segments have witnessed a price increase, the extent to which
it has taken place in the non-core is higher than in the core. The difference
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between volume and value for non-core segment is higher than it is for the core
segment
Britannia Industries Ltd. caters to all segments of the biscuit market. Its
major brands include Marie, Arrowroot, Bourbon, Milk-bikis, Nice, Snax, Coconut
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Britannia
Crunchies, Pure Magic, Snax, 50-50, Cream Treat Good Day, Jim-Jam, Little
Hearts and Chekkers and Tiger. The three new brands Digestive, Thinlite and
Cream Cracker have been launched under the umbrella brand Nutrichoice. The
company also launched a Cashew-Badam variant of Tiger. BIL has a small
presence in the cake market with Merricake, FruitCake and Half-Half brands.
In the biscuit`s segment the tiger brand has captured 21.6 per cent share
of glucose biscuit market. Tiger contributes 25% to volumes and 19% to the
sales of the company. Earlier, with its previous glucose biscuit brands - Glucose
D and Circus- Britannia had only 10 per cent of market share.
The company has decided to focus on seven core brands in the biscuits
and bakery category. The brands included Good Day, Tiger, 50-50, Snax, and
the Cream Treat brands, among others.
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Britannia
Tiger biscuits launch in July 1997 led Britannia’s foray into the glucose
category. Tiger now contributes about 40% to the biscuits turnover and has been
Britannia’s biggest success. The company has ‘Tiger’ brand in the low-price-low
income segment. In this segment, value growth is lower than volume growth.
‘Tiger’ brand operates in a competitive market where price is an important factor.
In Dec. 2000, Britannia dropped its plans to enter the mineral water
segment. The move comes close on the heels of Danone launching its own
mineral water brand, Evian, in India, through a separate wholly-owned
subsidiary, Danone India. Groupe Danone is globally the second-largest
producer of mineral water in the world with brands such as Evian, Volvic,
Ferrarelle Badoit, Font Vella and Aquaprima among
others. The mineral water segment in India is growing
at around 50% annually and is dominated by Bisleri and
Bailley.
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Britannia
contributing nearly 30% to the mother brand 50-50's total sales across the
country
In 2002, the company acquired Kwality biscuits. BIL acquired the trade
mark "KWALITY", the Chef Device and several other trademarks owned by
Kwality Biscuits of Bangalore for a consideration of Rs 30 crore. It also agreed in
principle to acquire 49% equity of Kwality Biscuits.
In October 2002, ‘Tiger Mast Cream’ was launched across the nation.
This launch comes subsequent. This was with a view to fulfil another impulse
buying need of the consumer and to leverage the companys Brand portfolio , of
which Tiger was one of the core brands.
On April 02, 2003 Britannia Industries Ltd (BIL rolled out ‘Britannia
Timepass’ in metros and mini-metros. The selling proposition for the new
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Britannia
snacking range was ‘tasty yet healthy snacking option’. The products are
available in two pack sizes of 25g and 50g, priced at Rs 5 and Rs 10
respectively. The launch of Timepass in the snacking category was an effort by
the company to try and strengthen its presence in the snacking segment.
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Britannia
Income Statement
31-Mar- 31-Mar- 31-Mar-
As on( Months )
04(12) 03(12) 02(12)
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The net sales have increased from 13985 In 2002 to 12958.28 in 2003 to 14396
in2004.
But the percentage to operating income has reduced marginally.
The operating income has reduced from 14003.63 in 2002 to 13033.37 in 2003 and
further increased to 14498.58 in 2004.
But the profit after tax has shown a downward trend from 2031.67 in2002 to 991.62
in2003 to 1187.99 in 2004 as a marginal increase over 2003.
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Britannia
Balance Sheet
As on 31-Mar-04 31-Mar-03 31-Mar-02
Assets Rs mn %BT Rs mn %BT Rs mn %BT
Gross Block 2078.46 32.53 2386.32 33.98 2316.76 33.48
Net Block 1067.10 16.70 1174.95 16.73 1228.75 17.76
Capital WIP 8.61 0.13 3.72 0.05 54.20 0.78
Investments 906.02 14.18 1048.72 14.93 703.72 10.17
Inventory 1222.46 19.14 824.25 11.74 714.93 10.33
Receivables 191.14 2.99 291.61 4.15 240.06 3.47
Other Current Assets 2993.15 46.85 3679.07 52.39 3978.44 57.49
Balance Sheet Total(BT) 6388.47 100.00 7022.32 100.00 6920.10 100.00
Liabilities Rs mn %BT Rs mn %BT Rs mn %BT
Equity Share Capital 251.12 3.93 259.04 3.69 268.50 3.88
Reserves 3388.80 53.05 3090.28 44.01 2863.67 41.38
Total Debt 391.87 6.13 1544.51 21.99 1846.70 26.69
Creditors and Acceptances 1548.43 24.24 1608.16 22.90 1485.77 21.47
Other current liab/prov. 808.25 12.65 520.33 7.41 455.45 6.58
Balance Sheet Total(BT) 6388.47 100.00 7022.32 100.00 6920.10 100.00
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The following is the capacity break – up & raw materials cost break – up &
sales break – up from 1998 to 2001
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Capacity breakup
Period ended 03/98 03/99 03/00 03/01
No. of months 12 12 12 12
Capacity volume(unit)
Biscuits (Ton) 111,000.0 111,000.0 111,000.0 111,000.0
Bread (Ton) - 12,000.0 12,000.0 12,000.0
Cake & rusk (Ton) 5,500.0 5,500.0 5,500.0 5,500.0
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Sales breakup
Period ended 03/98 03/99 03/00 03/01
No. of months 12 12 12 12
Sales value(Rs mn)
Biscuits 7,248.0 8,621.6 9,783.7 11,073.0
Bread 555.4 623.5 664.9 619.6
Cake & rusk 169.8 237.4 242.3 271.4
Gardens & dairy products 378.0 696.2 891.1 1,313.1
Marine products 49.9 - - -
Others 77.3 122.8 116.4 107.1
Sales volume(unit)
Biscuits (Ton) 144,213.0 167,467.0 192,646.0 214,214.0
Bread (Ton) 43,558.0 46,647.0 46,880.0 42,450.0
Cake & rusk (Ton) 2,249.0 2,809.0 3,003.0 3,082.0
Gardens & dairy products
3,024.0 6,111.0 8,820.0 13,039.0
(Ton)
Marine products (Ton) 659.0 - - -
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i) BAKERY
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ii) DAIRY
B) Business Strategy
i) BAKERY
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ii) DAIRY
With these initiatives, we feel that the joint venture will be able to develop a
sustainable and profitable business in the coming years.
C) Segment-wise Performance
i) BAKERY
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Britannia
Cake volumes are lower than last year mainly due to the fact that previous years’
volumes included Half Half cakes which has since been withdrawn. Further,
they have moved cake operations from their factory to outsourcing which has
impacted supply during the last quarter. They expect cake volumes to improve in
the coming months.
ii) DAIRY
Sales are up 39% due to significant growth in Butter, Ghee and Fresh milk
volumes.
iii) EXPORTS
They are concentrating on exports of our core products. Their exports have been
mainly to the Gulf countries with some inroads into Western markets.
i) BAKERY
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Britannia
ii) DAIRY
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Britannia
BRITANNIA – MARKETING
Promotions have been the chief propeller for growth for Britannia.
Britannia has gained the edge by creating an ‘emotional surplus’ for the Britannia
brand through effective communication and providing products for different
moments of consumption. Another equally
important move is exciting the consumer with
new products
Among the biggest promotions in 2001
was Britannia's glucose biscuit brand Tiger's
tie-up with the Hindi film blockbuster Lagaan.
Biscuits market has become the third largest category in terms of promotions -
after toothpaste and toiletries - in the last one year.The launch was supported
with an advertising campaign extending to print, POS (Point-of-Sale) materials
and outdoor branding.
Britannia's strategy has also been to drive margins from variants rather
than the mother brands. Britannia's strategy is to keep the price of its mother
brand at the lowest and launch variants at the higher price points and this has
worked for the company till date. Eg. Britannia has leveraged the equity of
Glucose biscuit brands like Tiger to extend it to variants like coconut. Britannia is
clearly playing a volume game. It is driving volumes through the Tiger brand.
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Britannia
Britannia believes its all about how you define the market, or how you
redefine it for yourself. At Britannia they came up with a one-line vision for the
company 'Every third Indian must be a Britannia consumer by 2004.' Because
Britannia believes that packaged products can be bought by just about every
third Indian.
Strategically expanding the product line is what Britannia believes in. Just
selling biscuits was not good enough. Britannia listed all the products used in a
home, and the competitors in each space. They then asked themselves if they
could acquire the No. 1 or No. 2 position in that market. Dairy seemed to be a
good area for them to enter. There were mostly large cooperatives without too
many branded products in the space. Amul was the leading producer. So
Britannia chose cheese, and wanted to become No. 2. In three years, they
became No. 1 in processed cheese.
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Britannia has time and again exhibited its understanding of the Indian
consumer. This has been in the form of new launches, innovative marketing and
promotional schemes. In FY 2001, the company spent Rs 85 cr in advertising i.e
6.7% of net sales. Britannia has tied up with the makers of ‘Lagaan’. Britannia
has been associating itself with cricket and has achieved good results.
Brands need to stay relevant by stretching along with the customer and
not expect the consumer to stay with you, brands need to move on, be a part of
the consumer’s life and create an activated presence by getting the product
involved. The product has done just that.
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Britannia
Britannia initiated the new positioning in 1996 . They captured logic with
emotion. Their brand equity has been built and nurtured by each and every one
of the employees, who constitute the direct Britannia family, not to speak of the
extended family comprising distributors, suppliers and franchisees. For them,
success comes from becoming a part of their consumers’ lives. They drive thes
organisation with a passion to produce and market ‘tasty yet healthy’ products in
which the consumer perceives value for money.
They have built the consumer’s trust by providing consistent quality and
through emotional bonding.
Biscuit major Britannia India's Britannia khao, World Cup jao promotion
has emerged as the most recalled sales promotion among all World Cup-related
cricket sales promotion.
Interestingly, biscuits captured the No 1 slot among all the categories
promoted during the world cup. The campaign was a continuation of the success
stories of `Britannia Khao, World Cup Jao' in 1999. The promotion offered 100
cricket enthusiasts an opportunity to visit South Africa and cheer the Indian team
in person in a match against Pakistan on March 1, 2003. The offer was valid on
select Britannia products from October 1 2002 onwards.
Wrappers of every such offer pack carried a certain number of runs which
could be exchanged for a specially designed `World Cup '03 scratch card' at any
of the 8,000 authorised Britannia Prize centres across the country. On scratching
the pad on the card, the prizes were revealed to the customer. The company's
previous world cup promotion campaign held in 1999 was considered one of the
largest consumer promotions ever, wherein redemptions alone were in excess of
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Britannia
Rs 1.6 crore. The 2003 year's `Britannia Khao, World Cup Jao' promotion
featured more than one crore prizes.
A free booklet of recipes was offered and participants were also invited to
taste the dishes. A series of such events were held at ITC
Grand Maratha Hotel Mumbai, through February and will
carry on into March.
Britannia's successful foray into the mass market for biscuits through
`Tiger' brand and into the dairy business gave volumes for Britannia when its
traditional businesses — biscuits and bread — showed signs of plateauing. With
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Britannia
low penetration of dairy products and snack foods, they offered significant
potential for growth. Therefore, unlike FMCG companies operating in markets for
mature products such as soaps or detergents, there appeared to be considerable
room for growth for Britannia.
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Further, the employee whose ideas have been approved is given total
autonomy to choose the appropriate mix of professionals across levels who need
to be a part of his or her team.
Having pioneered a new concept, the professional then becomes the team
leader for the specific project right from the day it starts getting executed.
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Britannia
The audience for this initiative is mainly the talent that the company has
inducted from the management campuses. The younger breed of professionals
are not moulded into a defined mindset and hence Britannia believes that they
have the capability to explore a wider gamut of possibilities to come up with ideas
that can trigger growth for the businesses.
Once the said idea has been able to deliver profitable results for the
business, the employee is suitably rewarded with bonuses. This is an effort on
Britannia’s part to acknowledge the benefits that the individual has successfully
leveraged for the establishment.
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Britannia Industries Ltd (BIL) had signed up six national cricketers, who
play for the Indian team to fuel a mega brand promotion initiative. The move is
aligned to the larger strategy to leverage the three lead brands that the company
has identified across two major categories which include biscuits and snacking
arena. In 2002, Britannia had decided to focus on two segments namely the
biscuits market and the mass market in the snacking arena. And Tiger, 50-50
and Timepass the chosen lead brands in these two categories. The mass market
represents a huge opportunity with its vast consumer base buying both into
branded products and those from the commodity sector. Brands like Tiger, for
instance, owe their success to being able to both gain upgrades from the
unorganised market and increasingly become a preferred brand in the organised
market
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At a time when growth rates for most FMCG products had wound down to
single digit, Britannia had managed to sustain a fairly healthy growth in its sales
revenues. This was on account of several factors.
One, the company has rationalised its product portfolio, pruning the
number of brands from 35 to 25, so that it could devote greater attention to key
businesses. Britannia has pruned the total number of brands being offered in the
market and those actually being supported through communication initiatives.
This has given the company a strong roster of solid brands
While growth rates in the mid-priced and premium biscuits had flagged, it
was Tiger which had kept Britannia's biscuit business roaring. Meanwhile, the
company kept up the high-decibel promotional campaign to make known its other
major brands -- 50:50, Mariegold, Bourbon, Pure Magic, Nice, Snax and Milk
Bikis. Britannia Khao World Cup Jao and Britannia Khao Crorepati Ban Jao were
among the more successful of these campaigns.
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Three, to pep up overall growth rates, the company had also been
leveraging its brand image to establish a foothold outside of the highly
competitive biscuit market. Over the years, it has launched a slew of dairy
products (processed cheese, flavoured milk, butter, ghee and dairy whitener) and
ethnic snack foods such as Aloo Bhujiya and Chana Choor.
The company is now in talks with speciality coffee outlets and petrol
pumps to place the products at strategic sites. BIL is taking up festival-specific
initiatives to trigger mobility for brands like ’Pure Magic’ and ’GoodDay Cakes’.
The company plans to launch a range of assortment packs. The initiative is to
improve institutional sales along with enhancing the display appeal for brands.
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BRITANNIA – ADVERTISING
Britannia made its mark in the general public with their first major TV
commercial for Glucose, which showed the then famous character Gabbar Singh
eating the biscuits with the byline- Gabbar ki asli pasand.
Britannia spent Rs. 29 crores in FY97 on advertising, up 39% from the
previous year, and 550% rise since FY91. None of their domestic competitors
like Parry or Bakemans can hope to match this, especially as they largely cater to
regional markets.
Britannia believes in high awareness through two components- one is
media awareness the other relates to point of consumption. The first one means
large advertising spends, and simple messages repeated umpteen times. ‘Eat
Healthy. . Think Better’ also translated as “ Swasth Khao Tan Man Jagao”
.Those are the key words. Britannia tries to get its message across in four-five
words.
Britannia kicked off its repositioning exercise in 1997 when it changed its
logo and corporate slogan as a first step in its makeover plans aimed at
transforming the company from essentially a 'bakery' business to a 'food'
business. Advertising played a crucial role in the repositioning. Key brands have
been re-packaged and re-launched, backed by very visible national advertising
campaigns.
To announce the new launch of a variant of Tiger- Chai Biskoot, the
company launched a high-voltage television campaign which included six ad
films from March 8 2002. For the first time, Britannia roped in six famous
Bollywood directors to produce these films. Earlier, the adfilms for a particular
product was produced by a single director. They used popular old Hindi film
songs as the back ground music for these commercials. With the tagline ‘Chalo
Chai Biskoot Ho Jain’, the commercials were produced by well-known directors
Mr Govind Nihalani, Mr Priyadarshan, Mr Aziz Mirza and Mr Mansur Khan.
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The biscuit market is hotting up with two huge players Hindustan Lever,
HLL, and ITC entering the fray but they still have to get their product mix in place.
They are trying the safe way to bite a share of the mainstream category - the
Maries and the Glucoses.
ITC hasn't had a very smooth maiden run in the biscuit market. Its first
product Bischips-‘I’ bicuits was an odd combination of a baked biscuit and a chip
and it didn't go down too well with the consumers. So after eight months of
making little or no impact, ITC pulled the brand off shop shelves. It's now
available only in Bangalore. ITC claims it's the positioning of Bischips that failed.
ITC is not the only company striving to make inroads into the marie-
glucose segment. HLL began with a fruit cream brand called Greedy Bistiks, but
is currently test marketing its brand of glucose biscuits.
Both companies expect over 10% of the biscuit market in the next few
years. But analysts feel that ITC has an edge over HLL with its pan-beedi shop
distribution and the first mover advantage over HLL.
ITC announced the launch of a range of biscuits and expects the biscuits
segment to contribute Rs 150-200 crore to its turnover in the next four years.
They hope to a have a market share of 10-11 per cent in biscuits in three
years. This would, however, still place ITC at number three behind market
leaders Britannia and Parle.
ITC would initially source its biscuits from two factories — one in Burdwan
in West Bengal and the other at Nagpur. The outsourcing activity could be
extended to a further two factories in the next three years to support the firm's
growth plans.
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Naware said ITC had planned an aggressive media campaign to drive the sales
of its biscuits.
As the two new players shape up their entry strategies and products, the
existing players are working harder to hold their ground.
On the other hand, intensified competition from regional players has led
the established Britannia and Parle to squeeze their profit margins, offer products
at various price points, introduce small pack sizes, and offer aggressive
marketing promotions. And even as the battle royale continues between Britannia
and Parle on a national level, Surya Agro now claims market leadership in the
non-glucose biscuit segment, which, according to industry estimates, accounts
for 30 per cent of the overall biscuits market.
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It is very difficult for any company to enter the domestic biscuits market.
First, consider the competition. Britannia and Parle are very aggressive
nationally, in the East Priya Biscuits is tough competition for any new player,
while Duke is strong in the South. Then, of course, there is Priyagold. Yet
another player is Bakeman's. The second reason is that margins have to be
incurred at dealer, distributor and stockist levels. Then there are other factors
such as large investments involved in manufacturing and brand building. It
makes it easier for any company wanting to enter this segment, therefore, to buy
out an existing brand.
The biscuit battle will be fought in the low priced categories of Glucose
and Marie and biscuits.
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There's much driving all this. In 1997, the government knocked biscuits off
the list of products reserved for the small-scale sector and the results are
showing. It was a big blow to the unorganised sector. As the big players rapidly
expand capacities and advertise on a big scale, small firms are getting squeezed.
Till 1995, Meghraj was the number one brand in Uttar Pradesh. Today,
he's been forced to downsize operations to survive. That goes for others too.
Many small-scale players will have to shut shop as they can't compete on quality
and packaging.
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strong presence in northern India, such as Amber and Shalimar are no longer
visible there.
Small players like the Delhi-based Asian and Apsara, too, are struggling to
survive. But with stacks of regional brand recall, they are good takeover targets.
For example, Bangalore's well-known Kwality biscuits became an easy prey for
any Britannia. It has five manufacturing units in Bangalore with a capacity of
24,000 tonnes per annum and has two strong brands in its kitty -- Kwality
Glucose and Pusti.
It's understandable why the biggies are slavering for more. India is the
world's second-largest biscuit industry -- China is the global market leader -- and
makes 1.2 million tonnes of biscuits per annum. But what makes India a delicious
proposition is that, despite these huge volumes, the per capita consumption of
biscuits here is small. According to the Federation of Biscuits Manufacturers, the
per capita consumption in India is about 1.2 kg per annum compared to 15 kg per
annum in developed nations. The size of the industry in India attracts new
players and encourages existing players to launch products and expand
capacity. Market research shows that traditional Indian snacks like samosas are
being replaced by biscuits.
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Product as a joint venture with Auro Foods). It is also expanding capacity not
only by tying up with more franchisee manufacturers, but has also picked up
equity in some cases.
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As of now, the trade for retailers and dealers is happy with their share of
margins from Britannia. While distributors are paid profit margins of around 5-7
per cent, dealers are paid around 11-12 per cent. A host of regional players have
moved into the market and are offering as many innovative products and higher
margins to the retailers. It faces stiff competition from Parle in the mass-market
segment, thus limiting its pricing power.
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But when 12 brands of ‘glucose’ biscuits were put to the test by the Delhi-
based Consumer Voice, they were found wanting: in protein, fibre, calcium and
iron.
Glucose biscuits are a popular and commercial name for what actually are
‘sweet biscuits’. With the exception of Horlicks and Priya Gold, all the other
brands had the word ‘glucose’ either directly incorporated in their names, or on
the labels. The quality of biscuits is statutorily covered by the provisions of PFA
pertaining to bakery products
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Glucose biscuits are regarded as the healthier option as far as other kinds
of biscuits are concerned (sweet, semi-sweet, crackers, cookies). But biscuits
cannot be a substitute for a wholesome meal and should be treated as a snack
food only even when most ‘glucose biscuits brands’ do make impressive
nutritional claims as part of their advertising strategy.
There is also a view that since ‘glucose biscuits’ do not form part of
regular meals, their nutritional content (or the lack of it) like dietary fibre, proteins,
calcium and iron, can be ignored.
Glucose content
There are no standards for the glucose content of
glucose biscuits, because there are no specific
standards for glucose biscuits. When one buys or
consumes glucose biscuits, one naturally assumes
that glucose would be an ingredient of the biscuit, but biscuit manufacturers are
under no obligation to either put glucose in glucose biscuits or state the quantity
of glucose in the biscuits they manufacture.
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Proteins
Out of 12 brands, only three declare their protein content on the label, and two of
them are found to have protein content less than the claims made.
Britannia Tiger has the most protein of the 12 brands, at 7.4 per cent.
Horlicks and Anmol follow close behind with 7.1 per cent proteins. Kellogg’s and
Radha have the least amount of proteins at 6.20 and 6.1 per
cent.
* Parle G, which claimed to have 8 per cent proteins, actually have just 6.8 per
cent of it.
* Only Britannia Tiger was true to its claim of 7.3 per cent proteins. Our tests
found that it actual protein content was 7.4 per cent.
Glucose biscuits give you ready energy in the form of glucose. Horlicks
provided the maximum calorific value at 456 kcal/ 100 gm, whereas Radha did
not do so well with the lowest calorific value of all 12 brands at 420.3 kcal/ 100
gm.
However, one needs to keep in mind that most of these calories are
‘empty calories’ and hardly provide any nutrition.
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Dietary fibre
Fibre is often missing from most processed foods,
which makes over-consumption of such foods
harmful for health. The higher the dietary fibre
content, the better.
Apsaraji had the most dietary fibre at 6.9 per cent, and Kellogg’s had the
least at 4.8 per cent. All brands except for Kellogg’s fell in the ‘good’ and ‘very
good’ category as far as dietary fibre is concerned. Kellogg’s only managed to
get a ‘fair’ rating.
Added sugar
All brands had added sugar between 22.7 per cent (Priya Gold) and 30.8
per cent (Anmol and Radha). Labels should mention the sugar content of biscuits
so that diabetic consumers can make a decision about which biscuit type they
should eat. Existing standards do not specify any minimum or maximum limit for
sugar content in biscuits.
Glucose biscuits often claim to have the goodness of milk and extra
calcium. Biscuits which have added milk exhibit higher calcium content. Of all the
brands tested, Horlicks had the most calcium content at 5295.9 mg/kg, while the
brand which had the second highest calcium content — Kellogg’s had a calcium
content of 2988.5 mg/kg.
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Asian had the least calcium content of all brands tested. Britannia Tiger,
Horlicks and Parle G were the only brands to declare their calcium content on
their labels. These were found to match their actual content.
Only Parle G declared its iron content, and against its claim of 80 mg/kg
iron, it did well by providing actual iron content of 234 mg/kg.
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The standards are devised by the Bureau of Indian Standards (BIS) which
comes under the Department of Consumer Affairs, Government of India.
However, since biscuits are a food item, the regulatory body is the Prevention of
Food Adulteration (PFA) which comes under the Ministry of Health. So BIS sets
the standards in consultation with the Ministry of Health. PFA issues guidelines
for adulteration and packaging.
Biscuits have wheat flour (maida) as one of their main ingredients. Wheat
production in India has been ridden with use of many kinds of pesticides and
chemicals, and it is only natural to assume that biscuits may carry some residual
pesticides. As yet, no standards for setting limits for pesticides in biscuits, have
been formulated by the BIS.
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* High calorie snacks (like biscuits) are not always bad, as long as the total
calorie intake matches the bodies energy demands, and as long as we don’t
consume too many ‘empty calories’.
* Children tend to consume glucose biscuits a lot and they often forget basic
dental hygiene. Frequent presence of food in mouth and around the teeth
encourages bacteria build-up and formation of plaque. Eating biscuits can cause
poor dental health if proper cleaning precautions are not observed.
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Glucose biscuits are practically ‘sweet biscuits’ but the term ‘glucose’ has
been added to the name to give consumers the perception that these biscuits
have the goodness of ‘glucose’ in it.
* Kellogg’s calls itself ‘Glucose Breakfast Biscuit’ and its label claims to have
five essential vitamins.
* Horlicks advertises itself as ‘the great nourishing biscuit’ which is ‘fortified with
calcium’.
* Apsaraji calls itself a ‘glucose milk biscuit’. Radha also calls itself the same,
with the addition of the punchline ‘the delicious food’.
* Britannia Marie Gold claims on its label that 100 gm of Marie Gold Biscuits
give as much protein as one glass of milk. The biscuits also claim to be fortified
with 58 per cent cereals and 10 essential vitamins.
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MARKETING ON LABELS
The following particulars should be clearly and indelibly marked on the label of
each container:
* Of the 12, only Cremica, Priya Gold, and Britannia Tiger carried the ISI mark.
* All brands carried the green dot on the label, which signifies that the product is
vegetarian.
* Only Kellogg’s, Horlicks, Parle G and Britannia Tiger mention nutritional
information on the label.
* All brands mentioned the ‘best before date’ as within five or six months from the
‘date of packaging’.
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* About 20 per cent say that they ‘often’ supplement their breakfast or teatime
with glucose biscuits, while 80 per cent expressed that they ‘sometimes’
consume biscuits with breakfast or tea.
* Around 80 per cent thought that ‘glucose biscuits’ were healthier than the other
biscuit varieties and specifically bought glucose biscuits for children at home.
* Horlicks priced at Rs 7 for 100 gm, gets the highest score of 93.47, falling in the
‘very good’ category. It has the highest calcium content, and scores on count of
its high dietary fibre and calorific value. It has a ‘best before’ date of six months
from the date of manufacture. However, it is also the costliest of biscuits among
the 12 brands tested.
* Anmol gets a score of 91.14. Along with Horlicks, it is one of the only two
brands to be in the ‘very good’ category, and is priced at Rs 10 for 250 gm.
Anmol has highest protein content after Britannia Tiger, and also good dietary
fibre content as compared with other brands.
* Britannia Tiger, priced at Rs 3 for 75 gm, gets a score of 89.84. It has the
highest protein content, high carbohydrate content as well as calcium and dietary
fibre as compared with other brands. Britannia Tiger is one of the only three
brands to carry the ISI Mark.
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Despite a strong brand and national distribution, Britannia has not enjoyed
the same kind of valuations and investor perceptions asother FMCG (food)
companies like Cadbury, Nestle, or Hindustan Lever. This has to do with the
recent history of the company which saw three changes in ownership in the last
decade.Between 1989 and 1993, the company was controlled by NRI
businessman Rajan Pillai along with Nabisco. During this period, the company
got into non-core activities like exports of seafood and cashew which diluted the
focus on its core strength - the Indian consumer market. A number of
controversies also arose, when the MD, Mr. Alagh was removed - and later
accused Mr. Pillai of misappropriation of funds. This sorry saga ended in 1993,
with control passing into the hands of Groupe Danone and Nusli Wadia. Ever
since then the company has re-focused its activities by:-
♦ getting out of merchant export businesses
♦ revamping its brand and image
♦ upgrading its manufacturing facilities
♦ improving packaging
♦ improving product offerings with the help of Danone
Another reason why Britannia has not been popular is that it operates in
the bakery segment which has long been the preserve of the unorganised sector.
In biscuits, 65-70% of the market is controlled by the unorganised players.
Britannia controls 38-40% of the remaining, which gives it an overall share of
under 15%. In breads, Britannia has been slowly losing market share to
unorganized players (market share 75- 80%), as well as to the Government
owned Modern Foods, which is given wheat at subsidized rates. As a result, the
bread business is highly unprofitable for Britannia, which must compete on price
with small-scale players who don’t pay excise, and the subsidised Modern
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Foods. The contribution of bread has fallen to 7% of sales, and volumes are
down 25% in the last six years.
De-reservation of Biscuits
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BRITANNIA PRODUCTS
All these products are at the lower end of the Product Line. Tiger is a
Glucose biscuit positioned on a health platform, in direct competition with Parle’s
Glucose, it is also intended to bring in customers from the unorganized sector.
Nice and MarieGold are products aimed at Children and older Adults. Marie and
Nice and to an extent Good Day, are also positioned as Tea Time Snacks.
LITTLE HEARTS
Little Hearts is a niche Product, developed as a snack that combines the
feeling of a biscuit and a wafer.
BREAD
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Mini Roule was launched in 1995 in the cake market, under the premium
segment, the company launched with Groupe Danone's technological input a
Swiss roll Cake "Mini Roule" which was also met with good response. Half/Half a
soft cake filled with cream in two variants, chocolate-vanilla and vanilla-orange.
Half/Half was also launched in a twin pack and a tray pack. These two products
have been launched as an extension of Britannia’s Product Line.
MILK MAN - Butter, Cheese, Ghee, Flavoured Milk, Dairy Whitner, Malai
Chaska
These products have now been shifted under the Britannia Fonterra Joint
Venture. They are basically FMCGs.
Britannia were the first movers in the Flavoured Milk Segment.
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Introduction
Today, Parle enjoys a 40% share of the total biscuit market and a 15%
share of the total confectionary market, in India. View some of the entertaining
advertising campaigns that have been part of this success story.
A long time ago, when the British ruled India, a small factory was set up in
the suburbs of of Mumbai city, to manufacture sweets and toffees. The year was
1929 and the market was dominated by famous international brands that were
imported freely. Despite the odds and unequal competition, this company called
Parle Products, survived and succeeded, by adhering to high quality and
improvising from time to time.
A decade later, in 1939, Parle Products began manufacturing biscuits, in
addition to sweets and toffees. Having already established a reputation for
quality, the Parle brand name grew in strength with this diversification. Parle
Glucose and Parle Monaco were the first brands of biscuits to be introduced,
which later went on to become leading names for great taste and quality.
Biscuits were very much a luxury food in India, when Parle began
production in 1939. Apart from Glucose and Monaco biscuits, Parle did offer a
wide variety of brands.
However, during the Second World War, all domestic biscuit production
was diverted to assist the Indian soldiers in India and the Far East. Apart from
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this, the shortage of wheat in those days, made Parle decide to concentrate on
the more popular brands, so that people could enjoy the price benefits.
Thankfully today, there's no dearth of ingredients and the demand for
more premium brands is on the rise. That's why, we now have a wide range of
biscuits and mouthwatering confectionaries to offer.
Import-Export
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Even the more sophisticated markets like USA & Australia, now relish
Parle products.
As part of the efforts towards a larger share of the global market, Parle
has initiated the process of getting ISO 9000 certification. Many Parle Products
have also won Gold, silver and bronze medals at the Monde Selection.
Parle Products
Parle-G has been a strong household name across India. The great taste,
high nutrition, and the international quality, makes Parle-G a winner. No wonder,
it's the undisputed leader in the biscuit category for decades. Parle-G is
consumed by people of all ages, from the rich to the poor, living in cities & in
villages. While some have it for breakfast, for others it is a complete wholesome
meal. For some it's the best accompaniment for chai, while for some it's a way of
getting charged whenever they are low on energy. Because of this, Parle-G is
the world's largest selling brand of biscuits.
Parle, Krackjack, Monaco, Marie Choice, hide and seek, fun centre,
cheeselings, jeffs, sixer.
Sweets n treats- Melody, poppins, MangoBite, Kissmi toffee bar, Rola-
Cola, toffees, orange candy, mints.
Krackjack
A little sweet - A little salty… That's what makes Krackjack very, very delicious!
This delightful biscuit is acclaimed in India and across the world for its
controversial sweet and salty taste. Krackjack has won 11 Gold, 3 Silver and 1
Bronze award at the 'Monde Selection'. You can enjoy Krackjack any time plain
or with a host of
beverages like tea, coffee or milkshakes.
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Monaco
This original 'O' shaped salted biscuit makes people exclaim 'Oh,
Monaco'. Whether plain or with toppings, Monaco is simply delicious. Light, crisp
and fresh, Monaco is now available in a variety of delicious flavours.
Marie Choice
"Solid Milk, Solid Taste" - this summarises the qualities of this delicious biscuit.
Bite into it to relish the real taste, energy and nourishing goodness of Milk.
Fun Centre
Parle's Fun Centre range, has the highest cream content amongst
biscuits in the category. Best of all, you get a choice of delicious, creamy
flavours, such as, orange, elaichi (cardamom) and chocolate cream.
.
Cheeslings
The scrumptious, cheese-filled taste makes it difficult to stop with just a
few. These little, cheese flavoured, fluffy biscuits, called Cheeslings make you
smack your lips for more
Jeffs
A rectangular shaped, salted biscuit, flavoured with cumin seed (Zeera)
for that delicious, crunchy taste.The high-count of cumin seed makes Jeffs a
more scrumptious savoury - an absolute must , for munching just about anytime.
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Sixer
This six-sided, salted delight is one hard-to-resist savoury. Whatever the
occasion, Sixer makes for a great salty snack Be it a picnic, a party, or just any
snack time, Sixer gives you that crunchy, munchy, delicious, salty taste that
leaves you wanting more!
Melody
A double symphony of chocolate on the inside and caramel on the
outside. That's Melody, India's first double-layered toffee. With a unique single-
twist wrapper, Melody hits the right note.
Poppins
Lickable, likable and loveable! That's a popular description for the multi-
fruit flavoured candy roll called Poppins. Now, with an even more fruitier taste,
the Poppins Roll shows how great taste can come in different flavours - apple,
orange, pineapple, watermelon grape or banana.
Mango Bite
Just take one bite and you'll be amazed - it tastes so much like a real,
sweet mango! And the green and yellow, single-twist wrapper adds to the illusion
of an actual mango fruit.
Kismi Bar
The 'Maha' Tasty Bar, that's the best description for the Kismi Bar. A
delicious elaichi (cardamom) toffee bar.The Kismi Bar is a favourite for it's great
taste and huge size.
.
Rol-a-Cola
A Cola you can eat! Yes, that's what Rol-a-Cola is all about. The great
cola-taste, contained in a little candy. So, you can enjoy it just about anytime.
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Toffees
Apart from Kismi, Parle offers a variety of toffees for you including
Mayfair, Lux and Dairy . All enriched with the goodness of dairy milk that makes
them the most popular toffees in India.
Orange Candy
Orange Candy is the first product to be launched from the House of
Parle. Since over 50 years, this oval shaped, juicy delight, has been extremely
popular in India. If you love Orange Candy, you
will also like Pick'n'Pack, Fruit Drops, and Tangy.
Mints
The first Indian mints that never fail to refresh you, Parle Mints are
available in a choice of two flavours - Peppermint and Rosemint. With its original,
Extra Strong Mint taste, Peppermints have a very refreshing effect. While the
unique combination of Rose and Mint flavours, cater to those who appreciate a
more mild, sweeter taste.
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BRITANNIA SWOT
STRENGTHS
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6.) Innovation
Britannia has been consistently adding new products to its existing lines,
and has been successful also because of its strong distribution network. It has
introduced a new range of namkeens in Mumbai called Britannia Snax. IT added
the Sweet Lassi and Cold Coffee to it’s flavoured milk line.
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WEAKNESSES
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OPPORTUNITIES
2.) Expansion
There still remains a good opportunity for expansion, since the biscuit field
has many players in the organised sector.
3.) Diversification
Britannia should add new products to it’s portfolio to compete with rival
brands. This will ensure its survival and give it a chance at market Dominance.
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THREATS
3.) Environment
The FMCG market in general if showing recessionary tendancies.
Although, Britannia has come out unscathed so far, It will only get more difficult
to grow and develop.
4.) Regulations
The Government has agreed to form and implement a plan and committee
to control specifications for the production of foods. This will be an additional
cost on the company.
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RECOMMENDATIONS
- The Paanwala –
The Paanwala is being accepted as an important medium of marketing. The
concept developed by ITC is a huge success and if Britannia adopts this concept
the brand would become more visible and the consumer would recall it. They
would even strengthen its distribution network. With ITC coming in the biscuit
segment and using its cigarette distribution network. This will also take Britannia
further in tapping the existing market in the unorganized sector.
- Exports –
Britannia is mainly focusing on exporting its core products. They have made
inroads mainly in gulf and some European markets. They should try to increase
the exports as their partner is no 1 in biscuits it would help them it could use
them as their umbrella brand
- Relaunch bread-
Britannia was the pioneer in the sliced bread segment, yet the contribution of
bread in the total turnover is only 6% . Since the market for packaged sliced
bread exists, they should consider relaunching to capture a larger share of this
market.
- Fruit Juices -
Britannia is already into packaged beverages, now under their Joint Venture
with Fonterra. Since fruit juices are becoming a popular food item at breakfast
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Britannia must focus on maintaining its current position first and not
innovate and experiment excessively at the cost of it’s existing Brand Equity. It is
the market leader, and thus can fortify itself to guarantee a comfortable
existence.
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BIBLIOGRAPHY
http://www.altindia.net/enron/pressClip/2001.10/www.hindustantimes.com.nonfra
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http://www.hindustantimes.com/news/printedition/070603/detECO01.shtml
http://www.indiainfoline.com/comp/brit/lr00.html
http://www.blonnet.com/iw/2002/02/03/stories/2002020300110800.htm
http://www.hinduonnet.com/thehindu/2002/03/27/stories/2002032701651600.htm
http://www.expressindia.com/fe/daily/19981027/30055514.html
http://www.ppfas.com/investindia/equityresearchreports/britania121201.htm
http://www.mouthshut.com/readreview/37047-1.html
http://www.hinduonnet.com/thehindu/2002/08/03/stories/2002080302571600.htm
http://www.tribuneindia.com/2001/20011226/nation.htm#3
http://www.rediff.com/money/2003/jun/04britannia.htm
http://www.expressindia.com/fe/daily/19980716/19755214.html
http://www.hdfcsec.com) (http://www.coolavenues.com
http://www.financialexpress.com/search/src/search.php
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