BUSINESS ENVIORNMENT PROJECT

2010-2011

Name: abc

Class: 4 A, Roll no:29

Project on BRITANIA BISCUIT

Index

• Meaning of Business Enviornment

• What is enviornment analysis
• Need & importnace of business analysis
• Acknowldement
• Company Overview
• Business Profile
• Financial Performance
• History of Britania Biscuits
• Good day story
• Reasons for going global
• Swot analysis
• Marketing Strategy
• PEST
• Recommendations
Meaning of Business Environment

Business environment is an aggregate of all the conditions, events and

influences that surround and affect it. It is broad and ever changing as
its separate elements interact with one another. It consists of internal
and external factors that may influence the nature and scope of
business activities. It can be described as favourable or unfavourable,
liberal or conservative and progressive or regressive.

What is Environmental analysis?

Environmental analysis is the study of the business environment like

political, legal, cultural, economic, technological, etc so that the
company can have a competitive edge by balancing the company’s
resources and objectives with the external environment. The study of
business environment or environmental impact analysis within the
country is absolutely essential in the case of all business enterprises.
An analysis of business environment is necessary for a clear
understanding of the environment and the changes taking place in it.
It also helps in matching the strengths and weaknesses of firm with
the opportunities and threats operating in the environment. Thus
environmental analysis helps a firm to achieve its long term objectives
like survival, growth and stability of an organization. Environmental
analysis has three basic goals:
First the analysis should provide an understanding of current and
potential changes taking place in the task environment. It is important
that one must be aware of the existing environment.
Secondly, environmental analysis should provide inputs for strategic
decision-making. Mere collection of data is not enough. The
information collected must be used for strategic decision making.
Thirdly, environmental analysis should facilitate and foster strategic
thinking in organizations- typically a rich source of ideas and
understanding of the context within which a firm operates. It should
challenge the current wisdom by bringing fresh viewpoints into the
organizations.

Need and importance of B.E analysis

1) Knowledge of internal environment:

It is very important for the business to understand its internal

environment such as business policies, objectives of business
enterprise, its resources, organization structure and authority
responsibility relationship which is provided by environmental
analysis.

2) It provides information about prospects and problems:

Various factors surrounding the business keeps on changing due

to technological developments, consumers income, habits and
socio economic changes. These changes open up new
opportunities and also create problems for the present and new
entrepreneurs. A study of environment can help to identify new
opportunities and minimize the problems.
3) It studies dynamic behavior of the environment:Various factors
surrounding business such as economic, social, political, etc keep
changing. These changes have a profound effect on the
functioning of business enterprises. An analysis of business
environment helps to understand the dynamism of the
environment and suggest means to adapt and adjust to them.
ACKNOWLEDGEMENT

A work is never a work of an individual. I owe a sense of gratitude to

the intelligence and co-operation of those people who had been so
easy to let me understand what i needed from time to time for
completion of this exclusive project.
We want to express our gratitude towards Mrs .Ashwini Kadam,
Business Environment Faculty, DY Patil for giving me an opportunity to
do this project.

Last but not the least, I would like to forward our gratitude to my
friends & who always endured me and stood by me and without whom
i could not have envisaged the completion of my project.

Company Overview

The story of one of India's favourite brands reads almost like a fairy
tale. Once upon a time, in 1892 to be precise, a biscuit company was
started in a nondescript house in Calcutta (now Kolkata) with an initial
investment of Rs. 295. The company we all know as Britannia today.
 The beginnings might have been humble-the dreams were
anything but. By 1910, with the advent of electricity, Britannia
mechanised its operations, and in 1921, it became the first company
east of the Suez Canal to use imported gas ovens. Britannia's business
was flourishing. But, more importantly, Britannia was acquiring a
reputation for quality and value. As a result, during the tragic World
War II, the Government reposed its trust in Britannia by contracting it
to supply large quantities of "service biscuits" to the armed forces.
As time moved on, the biscuit market continued to grow… and
Britannia grew along with it. In 1975, the Britannia Biscuit Company
took over the distribution of biscuits from Parry's who till now
distributed Britannia biscuits in India. In the subsequent public issue of
1978, Indian shareholding crossed 60%, firmly establishing the
Indianness of the firm. The following year, Britannia Biscuit Company
was re-christened Britannia Industries Limited (BIL). Four years later
in 1983, it crossed the Rs. 100 crores revenue mark.
On the operations front, the company was making equally
dynamic strides. In 1992, it celebrated its Platinum Jubilee. In 1997,
the company unveiled its new corporate identity - "Eat Healthy, Think
Better" - and made its first foray into the dairy products market. In
1999, the "Britannia Khao, World Cup Jao" promotion further fortified
the affinity consumers had with 'Brand Britannia'.
Britannia strode into the 21st Century as one of India's biggest
brands and the pre-eminent food brand of the country. It was equally
recognised for its innovative approach to products and marketing: the
Lagaan Match was voted India's most successful promotional activity
of the year 2001 while the delicious Britannia 50-50 Maska-Chaska
became India's most successful product launch. In 2002, Britannia's
New Business Division formed a joint venture with Fonterra, the
world's second largest Dairy Company, and Britannia New Zealand
Foods Pvt. Ltd. was born. In recognition of its vision and accelerating
graph, Forbes Global rated Britannia 'One amongst the Top 200 Small
Companies of the World', and The Economic Times pegged Britannia
India's 2nd Most Trusted Brand.
Today, more than a century after those tentative first steps,
Britannia's fairy tale is not only going strong but blazing new
standards, and that miniscule initial investment has grown by leaps
and bounds to crores of rupees in wealth for Britannia's shareholders.
The company's offerings are spread across the spectrum with products
ranging from the healthy and economical Tiger biscuits to the more
lifestyle-oriented Milkman Cheese. Having succeeded in garnering the
trust of almost one-third of India's one billion population and a strong
management at the helm means Britannia will continue to dream big
on its path of innovation and quality. And millions of consumers will
savour the results, happily ever after.
Business Profile

Britannia manufactures diary products from its plants located in

Kolkata, Delhi, Chennai, Mumbai, and Rudrapur. The company has a
total installed capacity of 163,500 MT of biscuits and protein
foodstuffs. Key brands include Tiger, Good Day, Milk Bikis, Treat, and
Marie. In FY09 the company launched new brands; 50:50 Chutkule,
Treat Fruit, Rollz, NutriChoice Digestive, and renovated Milk Bikis,
Chota Tiger, and Chocolate Cream in the Tiger range. Further in 2008,
the company launched iron fortified Tiger' biscuits,'Good Day Classic
Cookies', Low Fat Dahi and renovated 'MarieGold'.

In 2009, biscuits and high-protein food achieved a y-o-y production

increase of 23% and 26%, respectively. During FY09, the bread, cake,
and rusk business grew by 54% y-o-y. Britannia exports its products
to countries in the Middle East and to USA, Ghana, and Singapore. It
has a JV in New Zealand to undertake marketing of dairy products. In
2009, Britannia formed a JV with Khimji Ramdas Group to set up two
bakery product companies in the Middle East. The company acquired
70% stake in Strategic Foods International LLC in Dubai and in Oman-
based Al Sallan Food Industries Co SAOG. During 20093, Britannia
formed a strategic alliance with a Bangalore-based company, Daily
Bread. This alliance will provide products under the brands Daily Bread
and Deluca’s.
Registered Office:
5/1/A Hungerford Street,
Kolkata - 700 017
West Bengal
Ph: 033 - 2287 0505 / 2287 2439 / 2287 2057
Fax: 033 - 2287 2501

Financial Performance

The year witnessed unprecedented commodity inflation, particularly in

sugar, wheat and milk products, in the latter half of the year, coupled
with a fiercely competitive environment. This restrained your
Company’s ability to correct selling prices and had a high adverse
impact on margins and profitability. Consequently, whilst your
company added Rs 2817 MM to gross sales, Profit from Operations
declined by Rs 778 MM, excluding provisions for certain one-off items
aggregating Rs 258 MM for certain disputes relating to a long term
lease, excise duty demand and obligation arising from a past
acquisition. Net cash flow from operating activities was Rs 2353 MM,
achieved by a disciplined approach to managing working capital.
Exceptional items for the year include Rs 329 MM towards amortization
of VRS costs and provision of Rs 200 MM for losses arising from Sri
Lanka operations and closure. Earnings Per Share was Rs 48.77. The
tables below show trends in performance across key parameters:
History of Britania Biscuits

The history of biscuits can be traced back to a recipe created by the

Roman chef Apicius, in which "a thick paste of fine wheat flour was
boiled and spread out on a plate. When it had dried and hardened it
was cut up and then fried until crisp, then served with honey and
pepper."
The word 'Biscuit' is derived from the Latin words 'Bis' (meaning
'twice') and 'Coctus' (meaning cooked or baked). The word 'Biscotti' is
also the generic term for cookies in Italian. Back then, biscuits were
unleavened, hard and thin wafers which, because of their low water
content, were ideal food to store.
As people started to explore the globe, biscuits became the ideal
travelling food since they stayed fresh for long periods. The seafaring
age, thus, witnessed the boom of biscuits when these were sealed in
airtight containers to last for months at a time. Hard track biscuits
(earliest version of the biscotti and present-day crackers) were part of
the staple diet of English and American sailors for many centuries.
The English, Scotch and Dutch immigrants originally brought the
first cookies to the United States and they were called teacakes. They
were often flavoured with nothing more than the finest butter,
sometimes with the addition of a few drops of rose water. Cookies in
America were also called by such names as "jumbles", "plunkets" and
"cry babies".
Interestingly, as time has passed and despite more varieties
becoming available, the essential ingredients of biscuits haven't
changed - like 'soft' wheat flour (which contains less protein than the
flour used to bake bread) sugar, and fats, such as butter and oil.
Today, though they are known by different names the world over,
people agree on one thing - nothing beats the biscuit!

Some interesting facts on the origin of other

forms of biscuits

The recipe for oval shaped cookies (that are also known as boudoir
biscuits, sponge biscuits, sponge fingers, Naples biscuits and Savoy
biscuits) has changed little in 900 years and dates back to the house
of Savoy in the 11th century France. Peter the Great of Russia seems
to have enjoyed an oval-shaped cookie called "lady fingers" when
visiting Louis XV of France.
The macaroon - a small round cookie with crisp crust and a soft
interior - seems to have originated in an Italian monastery in 1792
during the French Revolution.
SPRING-uhr-lee, have been traditional Christmas cookies in Austria
and Bavaria for centuries. They are made from a simple egg, flour and
sugar dough and are usually rectangular in shape. These cookies are
made with a leavening agent called ammonium carbonate and baking
ammonia.
The inspiration for fortune cookies dates back to the 12th and 13th
Centuries, when Chinese soldiers slipped rice paper messages into
moon cakes to help co-ordinate their defence against Mongolian
invaders.
 Good day Story
Britannia Good Day was launched in 1986 in two delectable avatars -
Good Day Cashew and Butter. Over the years, new variants were
introduced - Good Day Pista Badam in 1989, Good Day Chocochips in
2000 and Good Day Choconut in 2004.
This rich cookie enjoys a fan following of consumers across all
ages, loyal to the brand promise of a great taste, evident from the
visibly abundant ingredients. Good Day is among the fastest growing
brands in Britannia's portfolio and it has been the leader in the cookies
category ever since its launch. The brand is synonymous with
everyday treats that infuse happiness into people's lives.
After two decades of magnificent success; it was time to give the
nation yet another reason to have a good day. Abundance, goodness,
indulgence and now unrestrained joy - that is the message of this new
campaign.
The new TT ad is the uncontrollable expression of the ticket collector's
happiness and joy that is stimulated by consumption of the cookie,
that spreads cheer amongst the people around him creating an
atmosphere of shared joy that's unorchestrated and straight from the
heart. The celebration was taken to the IPL as Good day cheered along
with a million cricket fans in the stadiums, each screaming and
proclaiming "Ho gaya re Good Day". The dazzling brilliance of this
endeavour, the contagious rhythm needs to be lived and spread
through the nation, making 'Iska toh ho Gaya Re Good Day' a part of
the common lingo and a way of life.
Good Day truly believes laughter and happiness are infectious, it
transcends race, caste creed unifying humanity in an inclusive
emotion.
The brand perseveres to infuse cheer, hearten the nation and
enliven lives. With its rightful place on the front page of The Times of
India, Good Day gifts the nation a priceless treasure, that of
spreading JOY!
Products:

Competitiors in India
Other players

• HLL,

• Bisk Farm,

• Anmol,

• Elite,

• Cremica,

• Dukes,

• Anupam,

• Craze,
Reasons for going global?
The Company witnessed all round growth in key categories with
Biscuits recording sales of Rs. 23,299 Mn. Bread, Cake and Rusk
business crossed the Rs. 2,700 Mn mark during 2007-08. This
business has doubled in two years.

In an intensely competitive biscuit environment, all Power Brands of

the Company recorded double digit growth, with Tiger and Good Day
growing in excess of 20%. The Company¹s innovation forays have
successfully addressed new benefit clusters and NutriChoice Digestive
has claimed its position in the health and vitality space. The Company
continues to maintain its leadership edge in 6 out of 7 key product
segments, the only exception being Glucose.

The Company introduced several new and renovated offerings in Tiger,

Good Day, Treat and MarieGold. The health and nutrition platform was
buttressed by Tiger Banana with iron-zor, fortified Milk Bikis,
renovated MarieGold and Nutrichoice Digestive. To tap the more
indulgent consumers, your Company launched Good Day Classic
Cookies, while continuing to roll out individual consumption packs at
the highly affordable Rs. 5 price point.

The Bread, Cake and Rusk portfolio was strengthened with the
successful relaunch of Breads, fortified with vitamins and minerals,
positioning them firmly as the healthy start to your day. This
innovation combined with relevant consumer activation in key markets
has seen a 30%+ growth in the Bread, Cake and Rusk business.

Britania industries ltd, India’s leading biscuit co, expects to start work
on its unit in Japan.
Even as Britania is expanding capacities, it is concentrating on cost
minimization,
Which continues to be a key parameter for the manufacturing system
and in this regard, the appropriate exploitation of latest technologies
like energy efficient ovens, on line mixing have been put in place in
few relevant units. This drive will continue in the forthcoming years to
leverage technology as a competitive edge.

What is SWOT analysis??

SWOT Analysis Sample A scan of the internal and external
environment is an important part of the strategic planning process.
Environmental factors internal to the firm usually can be classified as ..

Content Inside: SWOT Analysis Sample A scan of the internal

and external environment is an important part of the strategic
planning process. Environmental factors internal to the firm usually
can be classified as strengths ( S ) or weaknesses ( W ), and those
external to the firm can be classified as opportunities ( O ) or threats
( T ). Such an analysis of the strategic environment is referred to as a
SWOT analysis .

Strength

1. Britania Brand
2. Diversified Product Range
3. Extensive Distribution Network
4. (Availability in most remote villages)
5. Low & mid range price segment
6. catering to mass
7. Better understanding of consumer psyche.

Weakness
1. Dependance on retailers and grocery stores for displaying diversified
Britania products on shelf to induce impulsive buying
2. Dependance on Britania
3. Lackness of rural areas
Threats
 1. Hike in the cost of production due to hike in the prices of raw materials
and increase in transportation plus distribution cost due to high wedges and
oil prices
2. Entry of ITC (having very good distribution channels) in to biscuit
industry

Opportunities

Indian Biscuit Manufacturers’ Association (IBMA) estimates annual

growth of around 20% in next couple of years.
The $220 Billion food industry is expected to grow to $300 Billion by
2015.
Per capita consumption of Biscuits in the country t he country is
only 1.8 kg as compared to 2.5 kg to 5.5 kg in Sout h East Asian
countries and European countries, and 7.5 kg in USA.
Growing demand of Sugar free cream crackers & diet biscuits
Opportunity to further grown in Urban & Rural market; Current
penetration levels are
Urban Market : 75% to 85%
Rural Market: 50% to 65%
Grow in southern and east India
Marketing Strategies

Britania price Mix

Britania has adopted the Market Penetration strategy i.e Low price
along with capuring of a Japan market . The biscuit industry is been
experiencing steady growth of 14-15% annually.
Also they focus on providing good quality products at the same
time, which means it uses the value pricing method.
Profit margin distributors is 4% and for retailers is 10-12%

Britania place Mix

The extensive distribution network, built over the years,is a major strength for
Britania products.
Britania has got nearly 150 wholesalers, catering to 100000 retil outlates in
Japan, A 200 strong dedicated field force services its huge wholesalers &
retailers network.
Additionally got there are 20 depots and C&F agents supplying goods to
the wide distribution network.

Britania Pramotion Mix

Advertising – It was advertising through press ads, schools, online websites,
and brochures in Japanese (official), Ainu, Korean. The communication
spoke about the basic benefits of energy and nutrition.
Britania has advertised the use of Japanes celebrity
Sales Pramotion: Britania have planning to hold day fairs at branded venues
where games and fun events are organzied for the loacl people, where
Britania products are giveway prizes.
Public relations: Britania have planning something to do for enhancing public
relations:
Britania sponsored the teleserial of the Japanese superhero, “the great jap
hero”, that going to be become a huge success.

PEST
Political:
Taxes
Production and distribution licenses

Economical:
Increase in per capita income
India’s GDP growing at an average 8 %

Social:
Increase in per capita consumption
India’s 2nd largest producer of biscuit
Age
Lifestyle
Perception

Technological:
Innovation
R&D

Recommendations
To get benefit s of growing biscuit industry, I have following
2 recommendations to Britania

1] a. Promote Parle brand through schemes such as “Britania Gramin

Swastha Yojana” (a net work of ambulance van visiting rural areas
giving basic medical treatments educating people on nutrition deficiency
problems and promoting Parle nutritious products)
b. Promote Parle brand through T. V. shows such as “Britania Sakhi”
(“Britania - Friend of Women” ).The weekly T.V show will cater to health
issues of women and children and will explain long term benefit s of healthy
diet )
Results Expected –
1.Improved sales through “ Top of mind recall”.
2.Reduced competition for ‘visible shelf space’ in small grocery
and retail stores.
3. Communicating Britania value of ‘Nutrition Product
4. Brand Loyalty

2] Advertise products segment wise as follows

a. Nutritious/Glucose biscuits
Advertisement by doctors/ dieticians to explain t he benefit s to heath
conscious consumers
Advertisement by cricketers (Cricket is a very popular game in India)
to attract youth
b. Cream biscuits
To be endorsed by bollywood (film) starts

Result s expected –
1. Increased penetration in rural,
2. Southern and eastern market.
3. Attracting health & diet conscious people.