BISCUIT INDUSTRY IN INDIA

BRITANNIA

PRESENTED BY:Noor Islam Ainnul haqk Nagendra G.M Neha Choudhary Chenna Keshavulu

Biscuit Industry in India An Overview

Biscuit industry in India in the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries. The major Brands of biscuits are- Britannia, Parle Bakeman, Priya Gold, Elite, Cremica, Dukes, Anupam and Horlicks. Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogs, Smith Kline Beecham, Heinz etc entering the biscuit industry in India.

Industry Analysis

The consumer food industry mainly consists of readyto-eat products or ready-to-cook products such as pasta products, bakery products, biscuits, soft drinks, etc. Automatic approval for FDI upto 51% has been introduced. Bakery industry in India is probably the largest among the processed food industries, the production of which has been steadily increasing in the country. The two major bakery industries, viz., bread and biscuits account for almost 82% of the total bakery products.

Basis Of Segmentation
Broadly there are three ways to segment the market followed by the biscuit industry:

Based on age group.

Based on purchasing power of the consumers

The lifestyle approach.

Based on the production in India biscuits can be broadly classified into:-

Industry Research

Objective: To study eating habits with regards to consumption of biscuits amongst people. The composition of choices of food of people for breakfast and snacks shows that only 16% prefer biscuits.

Industry Research

Of the people who consume biscuits 25% people prefer cream biscuits, 12% prefer wafer biscuits, 34% prefer sweet plain biscuits and 29% of people prefer namkeen or salty biscuits.

Industry Research

The number of people who eat biscuits include 37% of people who eat them everyday, 29% eat twice a week, 14% eat four times a week, 8% eat once in 15 days, 6% eat once in 10 days and once in a month.

Britannia: Company Overview

1892 - Britannia established with an investment of Rs. 295 in Kolkata 2007- Britannia ranked No.1 in the Metros across all categories. The Origin of Eat Healthy Think Better Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" (Eat Healthy, Think Better) re-position directly addressed this new trend by promising the new generation a healthy and nutritious alternative - that was also delightful and tasty.

Makeover of Britannia
From being a manufacturer of baked products, BIL kicked off a diversification exercise to become a comprehensive foods and beverages company making cheese and other dairy products. BIL hired a Paris based design studio- Shining Strategic design, to craft a new logo and corporate slogan. Its work involved understanding the perceived and potential value of the brand where everything from colors and symbols to the typeface, was evaluated. Research showed that the brand 'Britannia' was synonymous with trust and quality, and the wide portfolio of products was seen as a source of strength .

SWOT ANALYSIS
STRENGTHS BIL has strong brands like Tiger, Marie gold and Good day. It also has well penetrated distribution network. BIL is holding leadership position in six out of seven sub-categories of biscuits. WEAKNESS BIL is unable to improve its margin since last few quarters due to increasing input costs. BIL is also facing problem of high turnover of its Key Managerial Personnel (KMP).

OPPURTUNITIES BIL has immense opportunities to increase its export turnover, which at presents is very meager. BIL can leverage its pillar brands in full swing. It may enter in to other food products or health beverages and to become total foods company.

THREATS Threats of regional and local players are more. Other competitors like ITC and Surya Agro are playing very aggressive role in this era beside the threat of inflation in prices of agriculture based commodities are always attached with it.

MARKET SHARE

Products Of Britannia

NutriChoice 5 Grain Biscuit NutriChoice Sugerout Treat Fruit Rollz 50-50 Maska Chaska Marie Gold ,etc. Daily Fresh Bread ,Cakes, Rusk's Curds ,Milk ,Butter

Product Feature
Britannias product comes under undurable goods The product comes in different size as well as shape Products are of good quality

Product Feature

Good for health Tasty The product are available in attractive packaging Product are available in a number of variant

Promotion

Britannia promotes itself through:Advertisements-Television, newspaper, magazines, etc. Sales Promotion-small pack of 50-50 with Good Day ,free gift pack in festive seasons, rural marketing fair. Events-Britannia Khao World Cup in1999, Lagan match in 2001, etc. Interactive web site.

Place

Britannia product is available in allover India . Britannias all the product we can find in every place like rural market as well as urban market , in short it is available every where . Britannia is available in small stores to big retail outlet.

Britannia industries

Wholesalers

Agents

Point of sale ie Retailers

Kirana Shops

Big retail units like Food Bazaar & for exports

STRATEGIC ANALYSIS OF BRITANNIA INDIA LTD

VISION

To dominate the food and beverage market in India with a distinctive range of Tasty Yet Healthy Britannia brands.

MISSION

To dominate the food and beverage market in India through a profitable range of Tasty yet Healthy products by making every Indian a Britannia consumer. We want to be part of our consumer- at home, out of home, a natural part of his life.

Manufacturing Units

Uttaranchal Delhi Chennai Kolkata Britannia plans to set up contract manufacturing units Strategy to set up new contract manufacturing units at least at 35locations in the country in the next two to three years

GOAL

To provide consumers the highest standards of food safety and ensure hygiene in new diversified food category.

STRATEGIC OBJECTIVE
To enter ready to eat food category within next 1 year and focus on generating growth through increasing the base and frequency of consumption.

FINANCIAL OBJECTIVE

We aspire to achieve a market share of 20% in ready to eat food category in next 2 years after
launch

Pricing Strategy

Pricing is one of the most important element of the marketing mix,which generates turnover for the organisation. The remaining 3 ps are the variable cost for the organization it costs to produce and design a product: It cost to dirstibute a product and cost to promote it .

Pricing Strategy

Price must support these elements of the mix, pricing a product too high or too low mean a loss of sales for the organisation. Pricing should take into account the factors like fixed and variable cost, competiton, company objectives, proposed positioning strategies, target group and willingness to pay

The pricing strategy is based much on what the objectives company has said to achieve and the britannia has adopted number of pricing strategies. Competition pricing: they have set a price which is competitive when compared with compititors. Product line pricing: priced different products within the same product range in different price prints.The better the feature & the benefit given the greater the consumer will pay. This form of price discrimination assist the company,

Bundle pricing: The organisation bundles a group of product at a reduced price while providing family packs. Value Pricing: They have also used Value based pricing Britannia has worked a lot on fixing the price of its biscuits it has package of its products in various prices & its biscuits ranges from Rs 10 to Rs 20 and so on.

Consumer distribution channel

#Manufacturer North West South East #Distributor Whole seller Retailer Consumer