68199349 britannia milk marketing strategies of britannia milk produc
DESCRIPTION
68199349 Britannia Milk Marketing Strategies of Britannia Milk ProducTRANSCRIPT
A SUMMER TRAINING REPORT
ON
MARKETING STRATEGIES OF BRITANNIA MILK PRODUCTS
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)
TRAINING SUPERVISOR SUBMITTED BYMR. N.K MOHANTY SAURABH MAGAN DIRECTOR –SALES ENROLLMENT NO. 05511242050
SESSION 2005-2008
GURU JAMBHESHWAR UNIVERSITYHISAR
2
ACKNOWLEDGEME
NT
ACKNOWLEDGEMENT
The present work is an effort to throw some light on “Marketing
Strategies of Britannia Milk Products”. The work would not have been
possible to come to the present shape without the able guidance,
supervision and help to me by number of people.
I want to thanks to those people to whom whenever I approached for help
they have given me their valuable time. First of all I want to take the
opportunity to thank MR. N.K MOHANTY, Britannia Industries ltd.
for his appreciation and guidance.
SAURABH MAGAN
3
4
EXCECUTIVE
SUMMARY
EXECUTIVE SUMMARY
The title of the project is “An Empirical Study On Marketing Strategies Of Britannia
Industries Limited”.
For that the survey of 150 consumers and 200 retailers had been made and it is found
that cheese product is not properly marketed. This product is lacking in promotion
activities such as advertisement, schemes, and also in distribution system.
The results of both consumer & retailer survey has been presented. Consumer survey
includes consumer behavior & retailer survey emphasis on the effect of retailer push
energy on the demand of cheese products
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TABLE OF CONTENTS
TABLE OF CONTENTS
1. INTRODUCTION 7-10
ABOUT THE COMPANY
PRODUCT INUDSTRY
SWOT ANALYSIS
2. OBJECTIVE OF THE PROJECT 11
3. RESEARCH METHODOLOGY 12-14
RESEARCH DESIGN
DATA SOURCES
PRIMARY DATA
SECONDARY DATA
QUESTIONNAIRE DESIGN/FORMULATION
SAMPLE DESIGN
LIMITATION
4. COMPANY FROFILE 15-21
5. BRITANNIA PRODUCTS 22-27
6. CLASSIFICATIONS OF PRODUCTS 28-30
7. DATA ANALYSIS 31-52
8. CONCLUSION 53
9. LIMITATION 54-55
10.RECOMMENDATIONS 56-58
11.ANNEXURE 59-63
QUESTIONNAIRE
12.BIBLIOGRAPHY 64
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7
INTRODUCTION
INTRODUCTION
The title of the project is “An Empirical Study On Marketing Strategies Of Britannia
Industries Limited”. To understand the project properly we should know about the
marketing research and about the market share i.e. what does exactly it means.
WHAT IS MARKETING RESEARCH AND CONSUMER BEHAVIOUR
Marketing research is the function that links the consumer, customer, and public to
the marketer through information used to identify and define marketing opportunities
and problems generate refine and evaluates marketing action, monitor marketing
performance and improves understanding of marketing as a process. Marketing
research specifies the information required to address these issues, designs the method
for collecting information manages and implements the data collection process
analyzes and communicates the findings and their implication.
American Marketing Association: Official definitions of marketing research
“Marketing research is the specification, gathering, analyzing and interpretation of
information that links the organization with its market environment”.
ABOUT THE INDUSTRY
The Indian economy continues to grow at a healthy pace with a 6.9% growth in the
financial year 2006-07 on the back of robust showing by manufacturing and service
sectors. Within FMCG’s, the biscuit industry showed a robust volume growth last
year. The organized and branded biscuit industry in India is currently estimated at
around 900,000 tonnes having grown 12% last year, as compared to the 7% growth of
the FMCG sector. New players have entered the market at the national level and the
regional level, making the industry dynamic and very competitive.
OVERVIEW OF BRITANNIA INDUSTRIES LTDBaking practices were well known to Indian cuisine for thousands of years, but the
humble biscuit became a familiar and commonplace item of diet only during the 20th
century. The products and marketing strategies of India’s premier food company
Britannia Industries. Limited over the last century have been responsible for this
remarkable dietary acculturation.
PRODUCT INDUSTRY
Britannia was incorporated in 1918 as Britannia Biscuits Co Ltd in Calcutta. In 1924,
Peak Freans, UK acquired a controlling stake, which later passed on to the Associated
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Biscuits International (ABI) a UK based company. During the ’50s and ’60s,
Britannia expanded operations to Mumbai, Delhi and Chennai. The exports of
seafoods started in the ’70s. In 1987, Nabisco Brands Inc, a well-known European
food company, acquired ABI. In 1989, J M Pillai, a Singapore based NRI
businessman along with the Groupe Dan one acquired Asian operations of Nabisco,
thus acquiring controlling stake in Britannia. Later, Groupe Dan one and Nusli Wadia
took over Pillai’s holdings. In 1977, the Government reserved the industry for small-
scale sector, which constrained
BRITANNIA’S MILESTONE
2003 Sales crossed Rs 10,000 million. (235 MN. Used)
2004 Opened a new category: SNACKING PRODUCTS.
2005 Sales increase by 14.43%, total sale of 1338.10 crores.
2006 Profit of 70.5 crores, an increase of 38.24%.
2007 The creation of a centralized set-up for payables processing, accounting and
MIS systems in the corporate office at Bangalore.
MISSION OF THE COMPANY
“To dominate the food and beverage market in India through a profitable range of
tasty yet healthy products” Regarding the basis of setting mission and vision
statement, Britannia gives top most priority to “customer satisfaction”, followed by
quality, market leadership, increased profit variety, sales turnover and profit
maximization.
CONSUMER BEHAVIOUR
Consumer behaviour studies how individuals, groups and organizations select, buy,
use and dispose of goods, services, ideas, or experiences to satisfy their needs and
desires. Consumer behaviour can be also defined as the behaviour that a consumer
exhibits before buying the products; it includes the kind of search that a consumer
made about the product. While using the product, includes when where and how the
consumer is using the product. and after using the product, includes post sale facilities
e.g. service, repairs. Understanding consumers and “knowing consumers” are never
simple. Consumers may state their needs and wants but act otherwise.
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SWOT ANALYSIS
STRENGTHS
Right products, quality and reliability.
Superior product performance vs. competitors.
Brand Image
Products have required accreditations.
High degree of customer satisfaction.
WEAKNESSES
Some gaps in range for certain sectors.
Processes and systems, etc
OPPORTUNITIES
Profit margins will be good.
Could seek better supplier deals.
THREATS
Legislation could impact.
Existing core business distribution risk
High volume/low cost market is intensely competitive.
10
OBJECTIVE OF THE PROJECT
As the project was to identify the reasons for inconsistent sales of cheese product,
which includes the study of consumer behaviour and retailer survey. The question
arises why company need this kind of project. The main harms to the company from
inconsistent sales are
1. OVER OR UNDER PRODUCTION.
Inconsistent sale leads to over or under production. Over production increases the
investment of company in stock due to that company is not able to make optimum use
financial sources.
Under production is also major problem because the company is not able to satisfy the
demand of the consumers. E.g. If a retailer is not able to provide a product for one or
more time then the customer do not asks again for it.
2. If the demand is not stable then the company is not able to introduce new ideas
and plans.
3. In short inconsistent sales cause wastage of manpower, technology, raw material,
funds, loss of customers etc.
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RESEARCH
METHODOGLOGY
RESEARCH METHODOGLOGY
SAMPLE
INSTRUMENT USED
METHODS OF DATACOLLECTION
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RESEARCH METHODOLOGY
All the data presented here is collected directly from the consumers & retailers
survey. Whole data is primary.
The consumer survey of 150 consumers and 100 retailers is done. For the consumers
survey a questionnaire was prepared and data collected from various shopping malls,
picnic spots, and houses are visited.
Retailer survey is carried out in south Delhi. For retailer survey south Delhi was
divided into four parts and data was collected equally from these parts. The retailer
survey was based on simple conversation with the retailers about the problems with
cheese product.
Place
Number of retailers
surveyed
Greater kailash-1 5
Kalkaji 3
Alaknanda 5
East of Kailash 5
R. K Puram 4
South ex 5
Saket 4
Lajpatnagar 7
Motibagh 5
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COMPANY PROFILE
COMPANY PROFILE
BRITANNIA
Britannia was incorporated in 1918 as Britannia Biscuits Co Ltd in Calcutta. In 1924,
Pea Frean UK acquired a controlling stake, which later passed on to the Associated
Biscuits International (ABI) a UK based company. During the ’50s and’ 60s,
Britannia expanded operations to Mumbai, Delhi and Chennai. Exports of sea foods
started in the ’70s. In 1987, Nabisco, a well known European food company, acquired
ABI. In 1989, J M Pillai, a Singapore based NRI businessman along with the Groupe
Danone acquired Asian operations of Nabisco, thus acquiring controlling stake in
Britannia. Later, Grop Danone and Nusli Wadia took over Pillai’s holdings.
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.
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PLANT LOCATIONS
Britannia's plants are located in the 4 major metro cities - Kolkatta, Mumbai, Delhi
and Chennai. A large part of products are also outsourced from third party producers.
Dairy products are out sourced from three producers - Dynamix Dairy based in
Baramati, Maharashtra, Modern Dairy at Karnal in Haryana) and Thacker Dairy
Products at Howrah in West Bengal.
BUSINESS
Britannia core businesses constitute of Bakery and Dairy products. Bakery products
account for 90% of the revenues and include Biscuits, Bread and Cake & Rusk. Dairy
products contribute to 10% of Britannia’s annual turnover of Rs13.38bn.
Biscuits (82.7% of turnover)
Revenues from biscuit were Rs11.07bn in FY01. The company sold 214,214 tons of
biscuits registering a volume growth of 11% yoy. Biscuit sales in value terms
registered a 13.2% yoy growth. Britannia has a 40% volume share and 48% value
market share in the organized biscuit market. The company presently has an installed
capacity of 111,000 tons for biscuits. Production in FY01 was 59657 tons against
62034 tons in FY00. Over 70% of biscuits sold are outsourced by the company.
Over the years, Britannia has introduced and developed a full line of brands in all
segments of the biscuit market. The company's Tiger range of glucose biscuits have
been a runaway success, enabling the company to expand its presence in the largest
gluco category of the biscuit market. In salty-sweet segment Parle’s Krackjack and
Britannia’s Fifty-Fifty compete very closely. Britannia’s other major brands include
Marie, Thin Arrowroot, Bourbon, Milk-bikis, Nice, Snax, Coconut Crunchies, Pure
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Magic, Good Day, Jim-Jam and Chekkers. It has also launched biscuits like Vita
MarieGold, Nutri-Choice etc, under the health positioning.
BREAD (4.6% OF TURNOVER)
Britannia’s bread business has been gradually degrowing year after year. Bread sales
at Rs420mn accounted for just 4.6% of turnover in FY01, against 5.7% of turnover in
FY00. The company sold 42450 tons of bread in FY01, a volume degrowth of 9.4%
yoy. The company has an installed capacity of 12000 tons.
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DAIRY PRODUCT (9.8% IF TURNOVER)
The company's diversification into dairy business has been fairly successful. Dairy
product sales were Rs1.3bn in FY01. The company has relaunched all its dairy
products under the MilkMan brand name. New flavors like Milkman Cold Coffee and
Milkman Lassi have been launched in flavored drinks besides MilkMan Chocolate
Milk and Milkman Strawberry Milk. Cheese, dairy whitener, butter and ghee are the
other products sold under the MilkMan brand. Britannia outsources its dairy products
from Dynamix Dairy in Maharashtra, Modern Dairy in Haryana and Thacker Dairy
Products in West Bengal. During FY01 the company sold 13039 tons of dairy
products, a 50% yoy growth over 8820 tons sold in FY00. Britannia has invested
Rs58.3mn in the equity of Dynamix Dairy in FY01..
The Dairy business is proposed to be divested into a Joint Venture with the New
Zealand Dairy Board’s Fonterra Cooperative. Britannia hopes to gain from the R&D
support as well as access to the international product portfolio of the JV partner.
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CAKE & RUSK (2% OF TURNOVER)
Cake and Rusk sales were Rs271mn (2% of sales) in FY01. Volume growth was 2.6%
yoy with sales of 3082 tons. In value terms, sales grew by 12% yoy.
EXPORTS
Britannia has discontinued commodity export of Soya bean. Export of marine
products has also declined significantly. The company now mainly exports biscuits
and cheese to neighboring countries like Sri Lanka and Africa
Production breakup
Period ended 03/98 03/99 03/00 03/01
No. of months 12 12 12 12
PRODUCTION VOLUME (UNIT)
Biscuits (Ton) 49,447.0 53,092.0 62,034.0 59,657.0
Bread (Ton) 5,602.0 - - -
Cake & Rusk (Ton) 2,282.0 2,858.0 2,905.0 2,139.0
Dairy: India has emerged as the largest milk producing country in the world
manufacturing 81mn tons of milk pa. 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 suaveness.
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NEW VENTURE
Britannia Industries Ltd. (BIL) has entered into a joint venture with the Fonterra
Cooperative group, New Zealand’s biggest company and a leading dairy co-operative
group in the world.
The new joint venture would be know as Britannia New Zealand Foods private Ltd.
and both the companies would hold 49 per cent stake each while a strategic partner
will have the remaining 2 per cent, BIL said in a statement here on Tuesday.
Bangalore-based BIL would transfer its existing dairy business to the new joint
venture, which comes into effect from Wednesday. The new company would be
engaged in areas relating to sourcing manufacturing and distribution of milk and milk
products in India.
BIL chairman Nusli Wadia, in a statement, said the new company would have full
access to Fonterra’s R&D strengths to help in further upgrading product quality and
reducing production costs.
The combined strength of the two would constitute a formidable force in meeting
consumer needs and developing presence in the dairy segment, he added.
The joint venture would be uniquely positioned to become one of India’s leading
players in the dairy segment.
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BRITANNIA PRODUCTS
Britannia is recently re-launched its dairy products after a gap with the milk man
brand name to compete with mainly Amul and Vijaya.
Milkman Cheese
Made exclusively from cow’s milk
Permitted emulsifiers, preservatives and stabilizers added.
Directly consumable
Need refrigerated storage
Use in various food preparation
It is a protein rich product in pre digested form
MILKMAN DAIRY WHITENER
It is dry milk powder comes in papers and Tin pack. It is ultimate of liquid milk for
preparing tea and other beverages.
MILKMAN BUTTER
Having maximum amount of milk fat
Need refrigeration
Refrigerated life in 12 months
Packed in A1 foil packs
Delicious taste and good spread ability
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MILKMAN GHEE
Granular and white in colour
Complete milk fat
Used as a cooking medium
Directly consumable
Self life of 12 months at friendly temperature
Hygienically packed and prepared
Rich source of energy
Pleasant in flavour
BRITANNIA BUTTER
Britannia Butter is made from Butter, Common Salt, permitted natural colour-
Annatto.
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COMPOSITION:
Milk Fat 80%
Moisture 16%
Salt 2.5%
Curd 0.8%
CALORIFIC VALUE: 720 KCAL./100G
SPECIAL FEATURES:
Made from fresh cream by modern continuous butter making machines. Marketed in
India since 4 decades.
BRITANNIA DAIRY WHITENER
Britannia dairy whitener is made from partially skimmed milk and sugar.
Composition:
Milk Fat 20%
Milk Protein 21%
Carbohydrates :
Lactose 33%
Sugar 18%
Minerals 5%
Moisture 3%
Calorific Value: 470 kcal./100gm
Special Features :
Packed under an atmosphere of Nitrogen, has excellent natural miscibility (without
the use of lecithin), has a fine granular texture. A convenient alternative to condensed
milk. Marketed in India since last 6 years.
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Cheese Britannia Pasteurize Processed Cheddar
Britannia pasteurized processed cheddar cheese is made from Cheese, Sodium Citrate,
Common Salt, Citric Acid, permitted natural colour - Annatto. Emulsifier and Class II
preservatives.
COMPOSITION:
Fat 27%
Moisture 45%
Proteins 23%
Added salt 2.5%
Calorific Value: 340 kcal./100g
Special Features :
Made from graded cow/buffalo milk using microbial rennet.
Britannia Cheese Spread
Britannia cheese spread is made from Soft Cheese, Cheddar Cheese and Common
Salt.
COMPOSITION :
Fat 18-20%
Moisture 60%
Protein 14-15%
Adds Salt 1.8%
Sodium Citrate 2.5%
Calorific value : 240 kcal./100g
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SPECIAL FEATURES:
Highly acceptable product made from the most modern dairy plant through a special
formulation.
BRITANNIA PURE GHEE
Made from fresh cream has topical rich aroma and granular. An ethnic product made
by dairies with decades of experience.
COMPOSITION:
Milk Fat 99.7%
Moisture 0.3%
Calorific Value: 900 kcal./100g
Special Features:
Made from fresh cream. Has typical rich aroma and granular texture. An ethnic
product made by dairies with decades of experience. A rich source of Vitamin A, D, E
and K.
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PERSPECTIVE
The Operation Flood (OF) programme initiated by NDDB in 1970 was a planned
attempt to revive India's Dairy Industry from a premature stagnation. The OF
programme not only propelled the growth of dairy development in India, it also
helped India become the world's largest milk producer.
OF enhanced the incomes and quality of life for millions of India's dairy farmers,
most of them poor and many of them women. It has become India's largest Dairy
Development Programme.
OF (1970-1996) created a strong foundation to transform India's dairy sector into a
vibrant business activity. It paved the way to take up new initiatives and create new
conditions to firm up India's world leadership in milk production. The new challenge
for the Dairy Industry was to explore ways to emerge stronger using the network
created under OF. The response is Perspective 2010, a plan that attempts to take the
dairy cooperative movement to its highest potential.
Perspective 2010 focuses on four key areas. These include Strengthening
Cooperatives Business, Production Enhancement, Assuring Quality and creating a
National Information Network. The State Milk Marketing Federations and the Milk
Producers' Cooperative Unions, the architects and key beneficiaries have identified
the thrust areas. The plan is designed keeping at helm the benefit to farmers at large.
NDDB facilitated the planning process and will provide technical support and need-
based finance for implementing Perspective 2010.
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CLASSIFICATIONS OF PRODUCTS
DELHI’s Milk Product Mix
Fluid Milk 46.0%
Ghee 27.5%
Butter 6.5%
Curd 7.0%
Khoa (Partially Dehydrated Condensed Milk) 6.5%
Milk Powders, including IMF 3.5%
Paneer & Chhana (Cottage Cheese) 2.0%
Others, including Cream, Ice Cream 1.0%
Total 100%.
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MODERN TRADE STORES OF SOUTH DELHI
BIG APPLE (EAST OF KAILASH)
24 X 7 Lajpat Nagar & GK-II
Food Plus (GK-II)
Morning Store (GK-I)
Star Bazar (Kailash Colony)
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Sabka Bazar (NFC, KG, Kalkaji, Lajpta Nagar)
Items (Dairy Products)
Types of Cheese
1. Cheese Item
Cheese Cika (Natural Cheedar)
Cheer Spread – Plain Masala Herb, Minty Coriander, Peppy Cilantro,
Sour Cream & Onion
Cheese Cube
Cheese Slice
Cheese Dip
Pizza Cheese
2. Dairy Whitener
3. Ghee
4. Butter
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DATA ANALYSIS
DATA ANALYSIS
Factors responsible for inconsistent sale of DAIRY PRODUCTS are analyzed under
the following heads.
A. Consumer survey (Study of consumer behavior).
B. Retailer survey.
CONSUMER BEHAVIOR
Consumer behavior is the behavior that a consumer exhibits before buying a product,
while using the product and after using the product. So consumer behavior plays
important role in influencing the demand of a product. Consumer behavior is
unpredictable it can be predicted if we know the eating habits of the consumers. To
study the consumer behavior for dairy products following points are studied.
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BRAND AWARENESS
A Brand is a name, term, sign, symbol, or a combination of them, intended to identify
the goods or services of one seller or group of sellers and to differentiate them from
those of competitors.
A brand is essentially a seller’s promise to consistently deliver a specific set of
features, benefits and services to the buyers. The best brands convey a warranty of
quality.
To study the brand awareness for dairy products, 160 people were asked that whether
they know about dairy products of Britannia or not?
Out of 160 people surveyed, 110 were found aware of Britannia dairy products. That
means 73.75% people were aware of Britannia dairy products. And only 26.25% were
not. From the above analyses we can say that Britannia dairy products, have average
brand awareness.
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FREQUENCY OF CONSUMPTION OF BRITANNIA
DAIRY PRODUCTS.
The sale of a product is very much influenced by the frequency of consumption of
that product. If the frequency of consumption is regular, then the sales increase
consistently with addition of new consumers.
To study the kind of consumers for Britannia dairy products whether regular or
occasional
Survey of 150 consumers is done and following data is recorded.
Regular
consumers
64
Occasional
consumers
86
Total consumers
surveyed
150
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As the regular consumers of Britannia dairy products are only 42.66% and occasional
consumers are 57.33% this causes inconsistent sales.
35
Reasons for higher occasional consumer purchase for Britannia Dairy
Products are: -
1. People do not have the habit of consuming dairy products daily.
2. People avoid fat food because of fear of health problems.
3. People find it expensive so it cannot be consumed regularly.
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INFORMATION SOURCE FOR BRITANNIA DAIRY PRODUCTS
In dairy industry the demand of a product very much depends on advertisement. It is
the only source that motivates a consumer to purchase a particular product. So here an
attempt is made to find out the most effective media for Britannia dairy products
Out of 150 consumers surveyed
TVADVERTISEMENTS 138
BOARDS 7
RETAILERS 5
FRIENDS 2
BOTH TV & RETAILERS
5
BOTH TV & BOARDS 3
TOTAL CONSUMERS SURVEYED 150
37
TV Plays an important role in promoting Britannia dairy products. 92% consumers
are motivated through TV advertisements, 4.6% through Boards, 3.3% are through
Retailers, 3% through both Retailers and TV ads, and 2.1% through TV & Boards.
So from the above analysis we can say that TV & boards are playing important role in
promoting Britannia dairy products.
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RELATION BETWEEN DEMAND FOR BRITANNIA DAIRY
PRODUCTS AND CONSUMER AGE.
Every product has a target age group consumers and it is positioned according to that.
To study the target age for britannia dairy products a question was asked, whether
they purchase Britannia dairy products for there family or not. If yes then which age
group demands more for britannia dairy products?
Out of 150consumers surveyed: -
76% said Yes purchase for family.
24% said do not purchase for family.
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PURCHASE FOR FAMILY
0
20
40
60
80
100
120
YES NO
40
Out of 76%, who purchase britannia dairy products for their family, they purchase
britannia dairy products for following age group.
From the above analysis it can be said that jointly 15-25 () is the target age group for
britannia dairy products. So the advertisement and promotional activities should be
according to this age group.
AGE GROUP
(YEARS)
NO OF
PEOPLE
5-10 2
10-18 14
18-25 50
25 ONWARDS 48
41
BRITANNIA DAIRY PRODUCTS AS REGULAR FOOD?
Britannia dairy products is a product whose packing, size, shape and crunchiness
makes it look GOOD. When people were asked how they view britannia dairy
products as REGULAR FOOD? The following results were recorded.
Out of 150 consumers surveyed
112 consumers i.e. 56% views britannia dairy products as a regular food& 88
consumers i.e. 44%views as a optional food.
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KIND OF PURCHASE FOR BRITANNIA DAIRY PRODUCTS
To study the purchase category of britannia dairy products whether planned or
impulse a question was asked in the questionnaire that , what kind of purchase they
make of britannia dairy products?
Following results were recorded.
PLANED
PURCHASERS
69
IMPULSIVE
PURCHASERS
81
TOTAL 150
PLANED 46%
IMPULSE 54%
So from the above analysis we can say that britannia dairy products is more in
impulse purchase category, as we know products of impulse purchase category needs
very heavy advertisement.
43
CHANGE IN THE CONSUMPTION OF THE BRITANNIA DAIRY PRODUCTS.
When people were asked whether they have recorded any change in their
consumption of britannia dairy products by last 3-4 months or not.
Following results were recorded.
Out of 150 consumers surveyed:-
No Change Increased Decreased
93 38 19
0102030405060708090
100
No Change Increased Decreased
So we find that the majority of consumers 62%, has recorded no change consumption
of britannia dairy products. Only 25% consumers as per survey have recorded
increase and 13% consumers has recorded decrease in the consumption of Britannia
dairy products.
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B. RETAILERS SURVEY
In Britannia dairy products, due to Brand clutter there is very tough competition and
very less product differentiation. The consumer leaves his decision on the retailer.
Now day’s consumer simply asks the retailer for a sweet or fat cheese productst. It is
up to the retailer which product he offers, so the retailer is king in dairy products.
In retailer survey an attempt is made to study following issues
What motivates a retailer to sell britannia dairy products?
Whether retailer push energy influence the demand of Britannia dairy products or
not?
Problems faced by the retailers in selling britannia dairy products?
45
WHAT MOTIVATES A RETAILER TO SELL BRITANNIA
DAIRY PRODUCTS?
There are a lot of factors that a retailer seeks from the company to sell a particular
product. For britannia dairy products when this question was asked to the retailers,
they suggest lot of factors. but the common factors they replied were following.
MARGIN
SCHEMES
PROPER SUPPLY
CREDIT
REPLACEMENT
Higher margin is the most important thigh that a retailer seeks from a company.
Generally the decision of a retailer to sell a particular product is dominated by the
comparison of margin with other products of that kind.
The retailers compare britannia dairy products with both amul and mother dairy
Because Britannia dairy products are hanged with good quality so they are close
competitor of amul.
Second main thigh that motivates a retailer is the schemes with the products.
Commonly companies use to provide various retailers schemes to attract them to sell
their product. The most common schemes are some gift items, free samples, discounts
on bulk purchase. Same is in case of britannia dairy products the retailers often seeks
for schemes. britannia dairy products is providing various retailers time to time. Now
46
a days the scheme with britannia dairy products is a free pack of biscuits with
purchase of cheese.
Proper supply is the thigh that retailers want. In case co britannia dairy products, as
dairy products is in the category of impulse purchase, it should be hanged at front and
the supply should be regular.
Another important thing that the retailer seeks is the credit facility. The retailers of
britannia dairy products have to invest a huge amount in keeping various kinds of
dairy products. Small and even big retailers have some time problem in keeping stock
of britannia dairy products .As the sales of britannia dairy products are not so good
and retailers are not able to sell the stock for a longer period, so they need credit
facility.
Replacement of the products with complaints is another factor that a retailer wants
from a company. Many times in case of packed food there are complaints of rat biting
and brokered in which the retailer cannot be held responsible. It is with britannia
dairy products the retailer have problems of air leakage and rat biting and they want
replacement. if u will purchase a retailer can enjoy these schemes
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Skims
Cheese Slice (60pcs)
Cheese Cube (60pcs) 12 Bourbon Biscuits free
Cheese Spread (60pcs)
Cheese Cika(30pcs)
Cheese Tin (30pcs) 12 Bourbon Biscuits free
Butter (15 kg) 7 Bourbon Biscuits free
Ghee (1kg) 1 Good Day Biscuits free
Dairy whitener (12kg) 17 50-50 Biscuits free
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SURVEY RESULTS FOR MARGIN WITH BRITANNIA
DAIRY PRODUCTS
Out of 200 retailers surveyed 163 (81.4%) reported that the margin is good
with britannia dairy products and 37(18.6%) reported poor margin.
020406080
100120140160180
MARGIN IS OK MARGIN IS POOR
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NOTE: -
Here we can find that the majority of retailers have reported that the margin is
ok or good with britannia dairy products. According to some retailers if the
demand is good for a product then its margin do not matters. So company must
focus on increasing the demand.
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SURVEY RESULTS FOR SUPPLY OF BRITANNIA DAIRY
PRODUCTS
Regarding the supply of britannia dairy products the results are not favorable to
company. The supply of britannia dairy products is not very good. From retailer
survey it is analyzed that, only 124 (62.5%) retailers has on time supply and rest 76
(38.5%) has very poor supply.
0
20
40
60
80
100
120
140
GOOD SUPPLY POOR SUPPLY
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NOTE
The retailers who have recorded poor supply of britannia dairy products, most
of them are facing this problem just after the separation of distributors for
britannia dairy products from other products of Britannia.
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CONCLUSION
ADVERTISEMENT DEPENDENT DEMAND. The demand of britannia dairy
products depends heavily on advertisement. If the advertisement is regular and
frequency is high then the demand is also high.
The demand of dairy products was not so good before five to six months. Due to
that many retailers stop selling britannia dairy products. This causes instant slump
in the demand of britannia dairy products.
The third main reason for the slow down in the demand of britannia dairy
products would be poor distribution system of britannia dairy products. After the
separation of the distribution of britannia dairy products from other products, the
supply of britannia dairy products was not proper. The retailers are getting the
supply once in one or two months.
Introduction of new schemes with other products like amul, mother dairy products
also affect the demand of britannia dairy products.
Higher impulsive and occasional purchase is also the reason for the up & downs in
the sale of britannia dairy products.
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54
LIMITATIONS
LIMITATIONS
Number of consumers and retailers survived may be inadequate to represent the
whole scenario of Delhi market.
Not every retailer & consumer have positive attitude towards the survey, so the
information collected may be inaccurate.
It is also possible that the respondent may answer according to what they think
rather they do.
Some of the respondents are unwilling to answer because they feel that such
surveys are of no use.
The conclusions are drawn on the basis of response given by 200 retailers and 150
consumers. There is possibility of misunderstanding their views.
55
56
RECOMMENDATIONS
RECOMMENDATIONS
The suggestions, if adopted then the company may expect no further up and downs in
the sales of britannia dairy products and sales will definitely increase with
consistency.
After the survey of 150 consumers & 200 retailers the conclusion comes out that,
there is need to improve the distribution system of britannia dairy products. It is
noted that supply is mostly regular at shops with heavy investment and are placed
at centre of good residential places, such as Sabka Bazar, Apana bazaar. Many
retailers do not have regular supply.
The areas such as alaknanda, kalkaji, gk-1, South ex, rk puram has very poor
supply. Some of the retailers have reported supply once in one - two months. The
suppliers are ignoring small retail shops.
So the most important thigh is to improve the supply in both small & large shops.
britannia dairy products is a product mostly liked by the 15-24 age group as per
survey, So there is need to start some schemes for youth to motivate them to
purchase britannia dairy products.
britannia dairy products has higher impulse purchase than planed so to increase in
the planed purchase the frequency of advertisement should be increased.
Attractive hangers or stands should be provided to the retailers so that they can
easily put the bars of britannia dairy products out side to increase in sales by
increase in impulse purchase.
Retailer is the king in the dairy products. Retailer push energy also works in
promoting the sales of britannia dairy products. So there is need to motivate the
retailer through regular retailers schemes.
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For e.g.
Pepsi is giving one bottle free on the purchase of one crate of 500 ml.
M.D.H is giving special discount on the purchase of more than Rs 500.
The quantity in the small pack for Rs 4 is less (20 gm). The pack should be priced for
Rs.5 and the quantity should be increased by10 gm.
Introduction in new sweet & salty flavors.
Due to introduction of new flavors the investment of retailers
In britannia dairy products has increased. Now they have to invest four times in the
britannia dairy products. The demand of britannia dairy products is not so good , so
they must be given credit period of two weeks
Other suggestion given by the consumers includes:
Reduction in the saltness.
Improvement of taste.
Following SWOT analysis is based on the researcher’s observation of the market
while conducting the research and project’s data analysis.
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1. ANNEXURES
Questionnaire to study the consumer behavior for Britannia’s dairy products.
PERSONAL DETAILES Date :
Place :
Name
Age
Profession
Address
1. ARE YOU AWARE OF BRITANNIA’S DAIRY PRODUCTS?
(a) YES
(b) NO
2. HAVE YOU TRIED CHESSE PRODUCTS?
(a) YES
(b) NO
3. DO YOU CONSUME DAIRY WHITENER REGULARLY? IF NOT WHY?
(a) YES
(b) NO
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4. WHICH TYPE OF CHESSE DO YOU LIKE MOST?
(a) CHESSE CUBE
(b) CHESSE TIN
(C) CHESSE SLICE
(d) CHESSE PIZZA
5. HOW DO YOU COME TO KNOW ABOUT CHEESE PRODUCTS?
(a) T V ADVERTISEMENT
(b) BOARDS
(c) RETAILERS
(d) FRIENDS
6. ON WHAT OCCASIONS DO YOU LIKE TO CONSUME CHESSE
PRODUCTS?
(a) __________________________________________
(b) __________________________________________
(c) __________________________________________
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7. WHAT KIND OF PURCHASE DO YOU MAKE OF DAIRY PRODUCTS
(a) PLANNED
(b) IMPULSE.
8. HOW DO YOU VIEW BRITANNIA DAIRY PRODUCTS AS?
(a) REGULAR FOOD
(b) OPTIONAL CONSUMPTION
9. HOW DO YOU FEELS OF SUBSTITUTING THE CONSUMPTION OF
CHEESE WITH BUTTER?
___________________________________________________
___________________________________________________
___________________________________________________
10. (B) WHICH AGE GROUP OF YOUR FAMILY DEMANDS MORE FOR
DAIRY PRODUCTS?
(a) 5 – 10
(b) 10 – 18
(c) 18 – 25
(d) 25 – ONWARDS
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11. DO YOU THINK BRITANNIA DAIRY PRODUCTS DELIVERS BEST
VALUE FOR YOUR MONEY?
(a) YES
(b) NO
12. DO YOU HAVE RECORDED ANY CHANGE IN YOUR CONSUMPTION OF
DAIRY PRODUCTS BY THE LAST THREE TO FOUR MONTHS?
(a) NO CHANGE
(b) INCREASED
(c) DECREASED
13. WHAT KIND OF COMMENTS, EITHER FAVORABLE OR UN
FAVORABLE DO YOU RECEIVE FROM THE RETAILERS WHEN YOU ASK
FOR BRITANNIA DAIRY PRODUCTS?
___________________________________________________
___________________________________________________
___________________________________________________
14. YOUR COMMENTS AND RECOMMENDATIONS?
___________________________________________________
___________________________________________________
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BIBLIOGRAPHY
BIBLIOGRAPHY
2. Confederation of Indian Industries
3. www.indianinfoline.com
4. www.indiandairy.com
5. www.britannia.com
6. www.amulindia.com
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