a study on effectiveness of brand strategy of britannia biscuits

“A study on “ Effectiveness of Brand strategy of Britannia Biscuits “

CHAPTER - 1

INTRODUCTION

MARKETING:

In earlier times, marketers could understand consumers through the

daily experience of selling to them. Marketing involves an exchange

transaction between the buyer and seller. In other words, it is a set of

activities to direct and facilitate the flow of goods and services from the

original producer to final consumer in the process of distribution.

Perhaps the basic change in the marketing thinking is the paradigm

shift from “perceiving a sale” to ‘creating a customer”. Marketing in part

has been largely transacted oriented; today it is more relationship

oriented. In addition to designing the best marketing mix “to make a

sale”, there is growing emphasis on winning and keeping customers.

Good customers are always an asset which, when well managed and

served, will return a handsome lifetime income stream to the company. In

the intensely competitive market place, the company’s loyalty through

continually satisfying their needs in a superior way.

According to Philip Kotler. Marketing can be defined as “a social

and managerial process by which individuals and groups obtain what they

need and want through creating, offering and exchanging products of

values with others”.

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CONSUMER :

The term “customer” is typically used to refer to someone who

regularly purchases a particular store or company. Thus, a person who

shops at FOOD-WORLD or who uses Pepsodent tooth is viewed as a

customer of these firms.

The traditional view points have been to define consumers strictly in

terms of economic goods and services. This position holds that consumers

are potential purchasers of products and services offered sale. Here our

primary attention will be directed toward ultimate consumers, those

individuals, who purchase for the purchase of individual or household

consumption. And thus, this view has been broadened over time so that

at least some scholars now do not consider a monetary exchange

essential to the definition of consumer.

CONSUMER MARKET & BUYER BEHAVIOUR :

The aim of marketing is to meet and satisfy target customers needs

and wants. But getting to know your customers is never a simple job.

Customers may state their needs and wants but act otherwise. They may

not be in touch with their deeper motivations. They may respond to

influences that change their mind at the last minute.

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CHAPTER – 2

ABOUT BRAND

BRAND :

Branding has been around for centuries as a means to distinguish

the goods of one producer from those of another. In fact, the word brand

is derived from the Old Norse word brand, which means "to burn," as

brands were and still are the means by which owners of livestock mark

their animals to identify them. According to the American Marketing

Association (AMA), a brand is a "name, term, sign, symbol, or design, or a

combination of them, intended to identify the goods and services of one

seller or group of sellers and to differentiate them from those of

competition."

Thus, the key to creating a brand, according to the AMA definition,

is to be able to choose a name, logo, symbol, package design, or other

attribute that identifies a product and distinguishes it from others. These

different components of a brand that identify and differentiate it can be

called brand elements. Brand elements come in many different forms. For

example, consider the variety of brand name strategies that exist. In

some cases, the company name is essentially used for all products (e.g.,

as with General Electric and Hewlett-Packard). In other cases,

manufacturers assign individual brand names to new products that are

unrelated to the company name (e.g., as with Procter & Gamble and their

Tide, Pampers, Iams, and Pantene product brands).

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Definition :

An identifying symbol, words, or mark that distinguishes a product

or company from its competitors. Usually brands are registered

(trademarked) with a regulatory authority and so cannot be used freely by

other parties. For many products and companies, branding is an essential

part of marketing.

Branding:

Definition :

Entire process involved in creating a unique name and image for a

product (good or service) in the consumers' mind, through advertising

campaigns with a consistent theme. Branding aims to establish a

significant and differentiated presence in the market that attracts and

retains loyal customers.

Brand awareness :

Brand awareness is a marketing concept that refers to a consumer

knowing of a brand's existence; at aggregate (brand) level it refers to the

proportion of consumers who know of the brand.

Brand equity :

Brand equity refers to the marketing effects or outcomes that

accrue to a product with its brand name compared with those that would

accrue if the same product did not have the brand name [1][2][3][4]. And, at

the root of these marketing effects is consumers' knowledge. In other

words, consumers' knowledge about a brand makes

manufacturers/advertisers respond differently or adopt appropriately

adept measures for the marketing of the brand.

Brand Strategy :

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http://en.wikipedia.org/wiki/Brand_equity#cite_note-Ailawadi_et_al._2003-3

http://en.wikipedia.org/wiki/Brand_equity#cite_note-2

http://en.wikipedia.org/wiki/Brand_equity#cite_note-Keller_2003-1

http://en.wikipedia.org/wiki/Brand_equity#cite_note-0

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Brand

http://en.wikipedia.org/wiki/Marketing

http://www.businessdictionary.com/definition/customer.html

http://www.businessdictionary.com/definition/market.html

http://www.businessdictionary.com/definition/establish.html

http://www.businessdictionary.com/definition/aim.html

http://www.businessdictionary.com/definition/consistent.html

http://www.businessdictionary.com/definition/advertising-campaign.html

http://www.businessdictionary.com/definition/advertising-campaign.html

http://www.businessdictionary.com/definition/consumer.html

http://www.businessdictionary.com/definition/final-good-service.html

http://www.businessdictionary.com/definition/product.html

http://www.businessdictionary.com/definition/image.html

http://www.businessdictionary.com/definition/process.html

http://www.investorwords.com/2975/marketing.html

http://www.businessdictionary.com/definition/branding.html

http://www.investorwords.com/3610/party.html

http://www.businessdictionary.com/definition/regulatory-authority.html

http://www.investorwords.com/4125/registered.html

http://www.investorwords.com/6455/competitor.html

http://www.investorwords.com/992/company.html

http://www.investorwords.com/3874/product.html

http://www.businessdictionary.com/definition/word.html

http://www.investorwords.com/4847/symbol.html


A plan that employs a unique set of design tools - logo, palette,

typefaces, formats, images, and language - created for an organization

and applied to all its communication tools: annual report, letterhead,

business cards, packaging, .

Brand Image :

A positive brand image is created by marketing programs that link

strong, favorable and unique associations to the brand in memory. The

definition of customer-based brand equity does not distinguish between

the source of brand associations and the manner in which they are

formed; all that matters is the resulting favorability, strength and

uniqueness of brand associations. This realization has important

implications for building brand equity. Besides marketer-controlled

sources of information brand associations can also be created in a variety

of other ways: by direct experience; from information communicated

about the brand from the firm or other commercial or non partisan

sources.

OPERATIONAL DEFINITIONS OF THE CONCEPTS :

Brand: A brand is a name, term, symbol, design, or other feature that

identifies one seller’s good or service as distinct from those of other

sellers.

Brand Name: A brand name is that part of a brand that can be spoken,

including letters, words, and numbers; a brand name is often a product’s

only distinguishing characteristic

Brand Loyalty: Brand loyalty is a customer’s favorable attitude toward

a specific brand, which affects the likelihood of consistent purchase of this

brand when the need arises for a product in this product category.

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http://en.mimi.hu/marketingweb/packaging.html

http://en.mimi.hu/marketingweb/annual_report.html

http://en.mimi.hu/marketingweb/communication.html

http://en.mimi.hu/marketingweb/image.html

http://en.mimi.hu/marketingweb/logo.html


CHAPTER - 3

FMCG

Fast Moving Consumer Goods

FMCG Industry :

FMCG are products that have a quick shelf turnover, at relatively

low cost and don't require a lot of thought, time and financial investment

to purchase.

• ‘Fast Moving’ is in opposition to consumer durables such as kitchen

appliances that are generally replaced less than once a year.

• Three of the largest and best known examples of Fast Moving

Consumer Goods companies are Nestlé, Unilever and Procter &

Gamble.

• The Indian FMCG sector is an important contributor to the country's

GDP. It is the fourth largest sector in the economy and is

responsible for 5% of the total factory employment in India .

• This has been due to liberalization, urbanization, increase in the

disposable incomes and altered lifestyle.

• . The lower-middle income group accounts for over 60% of the

sector's sales. Rural markets account for 56% of the total domestic

FMCG demand.

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FMCG – Evolution :

1950’s-80’s – Low Investment in the sector

Low purchasing power

Govt’s emphasis on small scale sector

HLL and other company’s urbane focus

Post liberalization

Entry of MNCs

Focus shifted to getting to rural consumer first

Others, like Nestle, remained with the urban population

Latest fad to hit the market is the ‘sachet’ bug.

Mushrooming of regional brands

Nirma enters and changes the focus to ‘Value for Money’ in the

70’s

Post liberalization, Jyothi Laboratories, ‘Ghadi’ Detergent and

‘Anchor’ toothpaste giving the nation-wide brands a run for their

money.

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FMCG SECTOR :

Fast Moving Consumer Goods (FMCG) goods are popularly named

as consumer packaged goods. Items in this category include all

consumables (other than groceries/pulses) people buy at regular

intervals. The most common in the list are toilet soaps, detergents,

shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff,

household accessories and extends to certain electronic goods. These

items are meant for daily of frequent consumption and have a high

return.

A major portion of the monthly budget of each household is

reserved for FMCG products. The volume of money circulated in the

economy against FMCG products is very high.

Number of products the consumer use is very high.

Competition in the FMCG sector is very high resulting in high pressure on

margins. FMCG companies maintain intense distribution network.

Companies spend a large portion of their budget on maintaining

distribution networks. New entrants who wish to bring their products in

the national level need to invest huge sums of money on promoting

brands. Manufacturing can be outsourced. A recent phenomenon in the

sector was entry of multinationals and cheaper imports. Also the market

is more pressurized with presence of local players in rural areas and state

brands.

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THE TOP 10 COMPANIES IN FMCG SECTOR

SL.

NO.

Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3. Nestlé India

4. GCMMF (AMUL)

5. Dabur India

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries

9. Procter & Gamble Hygiene and Health Care

10. Marico Industries

CHAPTER – 4

ABOUT BISCUITS

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HISTORY OF BISCUITS:

Sweet or salty. Soft or crunchy. Simple or exotic. Everybody loves

munching on biscuits, but do they know how biscuits began?

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 traveling 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. In fact, the countries which led this seafaring charge, such as

those in Western Europe, are the ones where biscuits are most popular

even today. Biscotti is said to have been a favorite of Christopher

Columbus who discovered America.

Making good biscuits is quite an art, and history bears testimony to

that. During the 17th and 18th Centuries in Europe, baking was a carefully

controlled profession, managed through a series of 'guilds' or professional

associations. To become a baker, one had to complete years of

apprenticeship - working through the ranks of apprentice, journeyman,

and finally master baker. Not only this, the amount and quality of biscuits

baked were also carefully monitored.

The English, Scotch and Dutch immigrants originally brought the

first cookies to the United States and they were called teacakes. They

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were often flavored 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 "crybabies".

As technology improved during the Industrial Revolution in the 19th

century, the price of sugar and flour dropped. Chemical leavening agents,

such as baking soda, became available and a profusion of cookie recipes

occurred. This led to the development of manufactured cookies.

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.

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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 defense against Mongolian invaders.

Biscuit making process :

MIXING: This is a process where all ingredients are put together in right

proportion for dough formation. These ingredients are then fed into

Mixers where mixing is done and dough is prepared for

moulding/cutting .Major ingredients are flour, fat, sugar and others as per

the product one would like.

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MOULDING: In this section we laminate the dough into sheet, which then

passes down to gauge rollers, and sheet thickness is achieved for

moulder/cutter. Here we have a cutter or moulder as per the variety

where one gets the shape and sizes of biscuits.

BAKING: This is the area where we pass these moulded wet biscuit into

baking oven. The biscuits are baked on desired temperatures. Various

type of heating are available now days as per the convenience and cost.

Different type ovens are available

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COOLING: These baked biscuits are then passed on to cooling conveyors

for natural cooling prior too packing .The temperatures are brought down

to room temperatures

PACKING: These biscuit are then stacked and fed into packing machine

for packing Different packing material are available for packing of these

biscuit in different packs slug packs , pouch pack or family packs etc.

These packs are then put into secondary packaging like cartons to be

transported to retailers.

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CHAPTER - 5

COMPANY PROFILE

COMPANY’S BACKGROUND :

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) an UK based

company. During the 50’s and 60’s, Britannia expanded operations to

Mumbai, Delhi and Chennai. 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, Groupe

Danone and Nusli Wadia took over Pillai’s holdings.

PLANT LOCATION :

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 - Dynamic Dairy based in Baramati, Maharashtra, and Modern

Dairy at Karnal in Haryana and Thacker Dairy Products at Howrah in West

Bengal.

Britannia had spent 0.1 million US$ to hire Paris based designer

Shombit Sen Gupta to create a logo and packaging design. The logo had

three objectives:

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Give consumer reassurance that it was a trusted and familiar brand.

Britannia has the ability to change.

It had to be appropriate to the business the company was in.

The logo consists of the company’s name and slogan, “Eat Healthy

Think Better”. The Hindi rendition is “Swastha Khao, Tan Man Jagao”. The

corporate statement “Eat Healthy Think Better” captures the Indian

concept of the unity of mind and body.

The logo has three colors red, white, and green each having its own

significance. Color Red denotes Energy and Vitality. White denotes purity.

Green stands for Nutrition and Freshness. The strike communicates

Innovation and Futuristic Power of Britannia.

Today, Britannia is the largest biscuit and bakery company in the

country with the daily sales turnover of over Rs.8478 million. It is the

market leader in the 1.3-million tone Indian biscuits industry with a 60%

share. It has maintained market leadership with a 48% value market

share in the organized sector.

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. Throughout its existence, Britannia has

operated on the principles of providing products to the consumers that

are healthy and tasty. This is brought about by the use of high quality

ingredients with a strong focus on ‘naturalness’ and modern

manufacturing practices. The company today has a wide range of bakery

products in the biscuit, bread and cake segment. It has trimmed down its

wide product portfolio by reducing the products from 35 to around 25 and

began to focus on value-added instead of low-margin products.

BIL (Britannia Industries Ltd.) has decided to focus on seven

core brands in the biscuits and bakery category. The brands included

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Good Day, Tiger, 50-50, Snax, and the Cream Treat brands, among

others.

With the launch of Tiger brand, it has taken a plunge in the low-end

category, taking competition head on with Parle, which is the leader in

this segment. The company has also diversified within dairy and bakery

products to enter the butter, cheese and ghee markets. The portfolio was

expanded with the launch of butter, pure flavored milk in tetra packs and

UHT milk.

Britannia has built an enviable retail distribution network, which

services 400,000 retail outlets in 2,200 towns with the help of 2,500

distributors. The company is aggressively expanding its network with a

bias towards the rural markets recently, in the ethnic food segment, the

company introduced a new range of traditional ‘namkeens’ in Mumbai

called Britannia Snax. The new range includes seven varieties of

traditional namkeens like 'Bikaner ki Bhujia' and 'Rajasthani Alu Bhujia' in

a price range of between Rs.5 and Rs. 20.The company is in the process

of setting up a Greenfield Biscuit Project in Uttaranchal to augment its

production capacity, entailing an investment of about Rs.55.2 crore. This

plant will have capacity to produce over 45,000 tones of two or three

varieties of biscuit per annum. So after over seven decades of being

inseparable part of life in India, Britannia is now set to usher its customers

into a healthier and tastier future.

ABOUT EVOLUTION OF BRITANNIA :

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The story of one of India's favorite 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 mechanized 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

recognized for its innovative approach to products and marketing: the

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Lagan 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 savor the results, happily ever

after.

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BRITANNIA OVERSEAS :

Britannia in the Middle-East :

Britannia Industries Limited formed a Joint Venture with the

Khimji Ramdas Group, one of the largest and the most respected business

conglomerates in the Middle East. Britannia and its Associates have

acquired a significant stake in Dubai based Strategic Food International

Co. LLC and Oman based Al Sallan Food Industries Co SAOG. The two

companies are key regional players in the biscuits, wafers and cookies

segment in the GCC markets and export their products across the world.

Strategic Food International Co. LLC (SFIC) is one of the largest biscuit

and wafer manufacturing companies in the Middle East. An ISO and

HACCP certified company, SFIC is also a proud winner of the Dubai Quality

Appreciation Certificate. It offers a wide spectrum of products under the

brand Nutro, which is a leading biscuit brand in the Middle East.

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http://www.britannia.co.in/overseas_me_nutro_showcase.htm


Bakers Pride :

Al Sallan Food Industries Co is one of the foremost companies for

the production of cookies, rolls and chocolates. The products are well

known under the brand name of Baker's Pride .

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http://www.britannia.co.in/overseas_me_bakers_showcase.htm

http://www.britannia.co.in/overseas_me_bakers_showcase.htm


The origin of eat healthy think better :

Britannia -the 'biscuit' leader with a history-has withstood the tests

of time. Part of the reason for its success has been its ability to resonate

with the changes in consumer needs-needs that have varied significantly

across its 100+ year epoch. With consumer democracy reaching new

levels, the one common thread to emerge in recent times has been the

shift in lifestyles and a corresponding awareness of health. People are

increasingly becoming conscious of dietary care and its correlation to

wellness and matching the new pace to their lives with improved

nutritional and dietary habits. This new awareness has seen consumers

seeking foods that complement their lifestyles while offering convenience,

variety and economy, over and above health and nutrition.

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. Thus, the new logo was

born, encapsulating the core essence of Britannia - healthy, nutritious,

optimistic - and combining it with a delightful product range to offer

variety and choice to consumers.

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BOARD OF DIRECTORS

Mr.Nusli Neville Wadia

Chairman

Ms. Vinita Bali

Managing Director

Mr. Keki Dadiseth Director

Mr. Avijit Deb Director

Mr. A.K.Hirjee Director

Mr. Nimesh N Kampani Director

Mr. S.S.Kelkar Director

Mr. Pratap Khanna Director

Mr. Jeh N Wadia Director

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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.

Short-term Objective :

To improve image to shareholders.

To improve internal processes and controls.

To increase NSV and ROI.

Long-term Objective :

To be the lowest-cost producer in the market.

To become largest volume player in the bakery industry.

Distribution Strategy :

Nowadays, the company is also practicing direct dispatch system:

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Production Center

Depots Authorized Wholesalers’

Retailers

Production Center

Authorized Wholesalers’

Retailers


Basic Strategies :

New product development

New market development

Outdoor promotion

Rural thrust

Cost management

Quality Policy :

Customer Satisfaction

Total quality management

Continuous up gradation of technology

Improvement in processes

Focus to meet emerging needs of the customers

Mutually dependent lasting relationship with co-packers, associates

and suppliers.

Environment responsibility

Development of human resources

Improving skills and knowledge

Generating motivation to excel

Installing a sense of pride

Commitment towards quality

Quality Objectives :

Reduction in customer complaints

To start documentation of market returns dealer wise

To empower the workmen on individual work area to ensure that

only quality product are passed on the next page of production.

Continuous training for the development of human resources.

To minimize the accident level.

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As part of the growth strategy, the company always tries to build on

the values of brand "Britannia" by aggressively pursuing tasty yet healthy

offerings of mass appeal and also launching a host of affordable products,

which would help rejuvenate the mother brand and drive category

consumption.

GLOBAL PARTNERS :

The Wadia Group of India along with Groupe Danone of France, are

equal shareholders in ABIL, UK which is a major shareholder in Britannia

Industries Limited. GROUPE DANONE is an International FMCG Major

specializing in Fresh Dairy Products, Bottled Water and Biscuits/Cereals.

One of the World leaders in the food industry, these are some of the

laurels it possesses:

No # 1 worldwide in Fresh Dairy Products

No # 1 worldwide equally placed in Bottled Water (by volume)

No # 2 worldwide in Biscuits and Cereal Products

Through its three core businesses (Fresh Dairy Products, Beverages and

Biscuits and Cereal Products), GROUPE DANONE is committed to

improving the lives of people around the world by providing them with

better food products, a wider variety of flavors and healthier pleasures. Its

dominant position worldwide is based on major international brands and

on its solid presence in local markets (about 70% of global sales come

from brands that are local market leaders).

GROUPE DANONE is recognized for the dynamism and strength of its

brands:

Danone: the leading brand worldwide for Fresh Dairy Products;

DANONE represents almost 20% of the international market.

DANONE is present in 40 countries worldwide.

Evian: the best selling mineral water brand, with 1.5 billion bottles

sold every year. Present in the 5 continents, in 125 countries.

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LU: the second brand worldwide, the first biscuits brand of GROUPE

DANONE, which represents almost the half of the sales for the

Biscuits and Cereal Products division. LU is mainly present in

Western Europe.

Wahaha: the leading brand for refreshing still water (water, ready

made tea, fruit juices). The brand is one of the most popular in

China, with more than 1.5 billion liters of water sold each year. Its

name means "the child who laughs".

Financial results:

Net sales in 2004: 13,024 million Euros (+6.1% at comparable

scope)

Operational Income: 1,706 million Euros

Operating Margin: 13.1% (+40 base points in relation to 2004).

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Business Today, Special, 15 June 08, ranks Britannia Industries

Limited 27th in its list of India's Fastest Growing Large Companies

(Revenues More Than Rs.2000 Crores)

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SHOWCASE & BRAND STORES :

Tiger, launched in 1997, became the largest brand in Britannia's portfolio

in the very first year of its launch and continues to be so till today. Tiger

has grown from strength to strength and the re-invigoration in June 2005

and more recently, in Apr 2008 has further helped bolster its growth in

the highly competitive glucose biscuit category.

Tiger is a Glucose biscuit, which comes with the added goodness of

wheat and milk. It is for modern mothers who play an enabling role for

their children to compete in today's world and thus want the best. Now

Tiger Glucose has been fortified with "Iron Zor" with an attempt towards

addressing the Iron Deficiency crisis the children of India face.

Over the years, Tiger has become the mass-market face of Britannia

symbolizing fun and energy in both urban and rural India, and

transcending glucose biscuits.

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Tiger Coconut : Delicious Coconut Flavored Energy Biscuits,

launched in 2001.

Tiger Creams : Was Introduced in 2002 at just Rs.5 per pack. Tiger

Cream is now available in Orange, Elaichi, Chocolate, Pineapple,

Strawberry and Butterscotch flavors, and promises to bring more fun and

more energy to children across the country.

Chota Tiger : Is an extension of brand Tiger launched nationally in

May, 2007. It is mini sized poppable glucose biscuit with colored sugar

sprinkling. It comes in two variants: Milk Sparkies and ChocoSparkies

Tiger Banana : Britannia is committed to help secure every child's right

to Growth & Development through good food everyday. Purposefully

taking forward the credo of 'Eat Healthy, Think Better ', we have launched

a new variant under our power brand TIGER - TIGER BANANA - power

packed with IRON ZOR and with the delightful taste of banana.

IRON ZOR helps make mind sharper and body stronger. A Rs.4 pack has

as much IRONZOR as that in 1kg of Banana.

R&D in Britannia has spent considerable time to develop this

nutritious and delightful snack for children.

Britannia Tiger Banana packed with IRON ZOR and goodness of

Banana is accessible to all, being available in convenient packs priced at

Rs.2, Rs.4 and Rs.10.

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Unique features of Britannian :

If you think Britannia’s are extraordinary individuals who are

passionate about everything they do…create inspiration through

everything they do…and succeed in everything they do…you’re probably

right. Britannia’s are hand-picked for a singular purpose…to perpetually

ensure Market Leadership and generate exemplary performance in every

function.

Britannia’s exhibit the following leadership behaviors (we fondly call

BULBs – Britannia Universal Leadership Behaviors) :

Integrity

Team Orientation

People Development

Learning Orientation

Customer Orientation

Quality Orientation

Drive for Results

Entrepreneurial Spirit

System and Process Orientation

Communication

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CHAPTER - 6

BRITANIA COMPETITORS

Generally all organizations have competitors in the market. A

particular organization always comprises with other same business and

according to market share we clarify the brand of product is giving more

challenge to my product.

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CHAPTER - 7

AWARDS AND REWARDS OF BRITANNIA

1892 The Genesis - Britannia established

with an investment of Rs.295 in

Kolkata.

1910 Advent of electricity sees operations

mechanized.

1921 Imported machinery introduced;

Britannia becomes the first company

East of the Suez to use gas ovens.

1939 - 44 Sales rise exponentially to

Rs.16,27,202 in 1939.

* During 1944 sales ramp up by more

than eight times to reach Rs.1.36

crore.

1975 Britannia Biscuit Company takes over

biscuit distribution from Parry's.

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1978 *Public issue - Indian shareholding

crosses 60%.

1979 Re-christened Britannia Industries Ltd.

(BIL).

1983 Sales cross Rs.100 crore.

1989 The Executive Office relocated to

Bangalore.

1992 * BIL celebrates its Platinum Jubilee.

1993 Wadia Group acquires stake in ABIL,

UK and becomes an equal partner

with Groupe Danone in BIL.

1994 Volumes cross 1,00,000 tons of biscuits.

1997 Re-birth - new corporate identity 'Eat

Healthy, Think Better' leads to new

mission: 'Make every third Indian a

Britannia consumer's

BIL enters the dairy products market.

1999 Britannia Khao World Cup Jao" - a

major success! Profit up by 37%.

2000 Forbes Global Ranking - Britannia

among Top 300 small companies.

2001 BIL ranked one of India's biggest

brands.No.1 food brand of the country

Britannia Lagan Match: India's most

successful promotional activity of the

year. Maska Chaska: India's most

successful FMCG launch.

2002 BIL launches joint venture with

Fonterra, the world's second largest

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dairy company.

Britannia New Zealand Foods Pvt.

Ltd. is born.Rated as 'One amongst

the Top 200 Small Companies of the

World' by Forbes Global.

Economic Times ranks BIL India's 2nd

Most Trusted Brand.Pure Magic -

Winner of the Worldstar, Asiastar and

Indiastar award for packaging.

2003 Treat Duet'- most successful launch of

the year.

Britannia Khao World Cup Jao rocks

the consumer lives yet again.

2004 Britannia accorded the status of being

a 'Superbrand'

Volumes cross 3,00,000 tons of

biscuits.

Good Day adds a new variant -

Choconut - in its range.

2005 Re-birth of Tiger - 'Swasth Khao, Tiger

Ban Jao' becomes the popular chant.

Britannia launched 'Greetings' range

of premium assorted gift packs. The

new plant in Uttaranchal,

commissioned ahead of schedule.

The launch of yet another exciting

snacking option - Britannia 50-50

Pepper Chakkar.

2007 Britannia industries formed a joint

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venture with the Khimji Ramdas

Group and acquired a 70 percent

beneficial state in the Dubai-based

Strategic Foods International Co. LLC

and 65.4% in the Oman-based Al

Sallan Food Industries Co. SAOG.

2008 Britannia launched Iron fortified 'Tiger

Banana' biscuits, 'Good Day Classic

Cookies', Low Fat Dahi and renovated

'MarieGold'.

CHAPTER - 8

PRODUCT PROFILE

In the biscuit market internationally, Britannia’s Tiger made people

sit up when, starting from scratch after the economic liberalization, it

achieved quick sustainable growth in both volume and value with sales of

Rs.100 crore in the first year of launch. It was the brand values built up

around Tiger that transformed the commodity market to a branded

market and today Tiger is continuously growing.

In 1996, nobody, not even retailers, could believe that glucose had

the potential to grow another national brand. But Shining’s patented

research process extracted that glucose equals takat, and takat is force or

strength.

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Britannia’s Eat Healthy, Think Better positioning was then straddled as

Tiger Health Force biscuits for the glucose market. The design established

takat with a forceful Tiger wearing overalls and lunging speedily forward.

It connected to children and workers alike. The whole idea of creating the

Tiger mascot in a bright red packaging was to create a strong

differentiation from Parle G, the market leader in this category at that

time. Tiger’s design allows it to evolve in the future with the Tiger moving

in different postures with different product attributes. Today Tiger is the

healthiest brand in Britannia’s business portfolio bringing in annual sales

of about Rs.400 crore within five years.

STATEMENT OF THE PROBLEM :

Parle, the market leader in the glucose segment increased the price

of its 100 gram Parle-G, glucose biscuits from Rs.4 to Rs.4.50 during mid-

July. Britannia, the value leader maintained the price of its 100-gram

glucose biscuits - Tiger brand at Rs.4 as before. Britannia being the next

leader in the segment was interested to know whether the 100-gram

Parle-G glucose biscuit customers have switched to Britannia Tiger

glucose biscuits after the price increase of 100-gram Parle-G and if so, to

what extent. A few questions needed to be answered in this regard:

Are consumers aware of the Tiger glucose biscuit brand?

Does a 50-paisa price hike act as a booster for the customers to

change the brand?

What difference do the consumers feel about taste parameters of Tiger

and Parle-G?

What factors influence their buying decision?

What impact does the price change has on the market?

This study has been undertaken to answer the above questions and

help the researcher understand 100-gram Parle-G glucose biscuit

customers brand loyalty.

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The study has been designed on the following parameters:

Analyzing the brand awareness among respondents.

Analyzing the factors influencing brand decision.

Comparison of Tiger and Parle-G taste parameters.

Analyzing the impact of the price increase of the 100-gram Parle-G

on 100-gram Britannia Tiger.

Britannia Tiger brand launched in 1997 led Britannia foray into the

glucose category. The company’s Tiger range of glucose biscuits has been

a runaway success, enabling the company to expand its presence in the

largest glucose category of the biscuit market.

Within a short span of 7 years it has gained 28% of the market

share in the 100-gram glucose biscuit segment and is the second leading

brand in the segment. The brand faces competition from Parle-G brand,

which is around for 60 years and is the market leader with 57% market

share in this segment.

The research has been carried out to understand whether the

Britannia’s established brand name and the pricing strategy has been

able to pull 100-gram Parle-G glucose biscuit customers after the price

increase of 100-gram Parle-G.

To achieve this objective the present 100-gram Parle-G glucose

biscuit customers and the past 100-gram Parle-G glucose biscuit

Customers who switched from Parle-G to other brands of glucose biscuits

from mid-Aug to mid-Nov have been interviewed.

OBJECTIVES OF THE STUDY :

Specific objectives:

To make a through understanding of Branding & its significance in

increasing the sales of the organization.

Detail study about evolution of biscuits & its process.

Growth & future prospects of FMCG-Biscuits segment in India

economy.

To know to Britannia Company & its growth in Indian market.

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General Objectives :

To Conceptual analysis the Glucose Biscuits brand strategy.

To study the factors influencing brand decision.

To study the impact of the price increase of 100-gram Parle-G on

100-gram Britannia Tiger.

To understand the market potential of Britannia Tiger biscuits.

To know different Britannia products which both domestic &

International branded.

Effective Brand strategy adopted by Britannia tiger

biscuits :

1.Britannia has been investing significantly in higher and better quality

of human resources both at the front end and at the back end. It has

sharply segmented its go-to-market strategy and unlike an earlier focus

on simply increasing the number of outlets it covered.

2.Britinnia now has separate teams for general sales, modern trade,

institutions, and semi-urban and rural markets. It is building strong

Capabilities in each of these segments.

3. Britannia has been working with an international consulting agency for

building capabilities shopper understanding as opposed to consumer

understanding.

4. In 2008, Britannia divided its product portfolio into two distinct

categories: "health and wellness" and "delight and lifestyle." Products

such as Tiger glucose and Nutri Choice biscuits fall under the former

category, while Good Day and Treat fall under the latter. Each category is

headed by a senior executive responsible for outlining distinct growth

strategies.

5. Other initiatives include introducing personal consumption packs to

attract youth and people on the move, adding transit points such as bus

stops and small roadside shops to its distribution network, and addressing

40


workers in the business process outsourcing industry as a potential new

market.

6. Britannia has doubled its ad spending in the last three years. It is also

working to increase trade marketing visibility and, for the first time ever,

has signed on with a trade marketing agency.

According to one of director of Britannia company Mr.Mehta, Britannia

plans to increase advertising and marketing spending to 10% to 12% of

sales over the next few years from a current 7%.

CHAPTER - 9

CONCLUSION

Opportunity is always knocking, goes a splinter thought of the

popular aphorism. The trick is to open the door every time it knocks. It

clearly indicates that the price increase of 100-gram Parle-G glucose

biscuits is a very good opportunity for Britannia to achieve its objective of

making the company’s Tiger glucose biscuit brands the number one in the

glucose biscuit segment. Though the 50-paisa price increase of the 60-

year-old 100-gram Parle-G brand seems to be a major price change, it has

been found to be very significant for the just 7-year-old Britannia Tiger

brand. The research of the company show that the 50-paisa price increase

of 100-gram Parle-G brand has really added an appreciable percentage of

the glucose biscuit consumers to Britannia’s 100 gram Tiger brand

customer segment and also a notable percentage is likely to be added to

it. The major reason that has driven Parle-G customers to change their

brand was found to be the 50-paisa increase in the price of Parle-G,

thereby indicating the price sensitivity of the customers.

In the case of Parle-G brand, the researcher found that it’s the

taste, which contributed towards the customers brand loyalty. Parle-G’s

long presence in the market didn’t have much impact on the consumers

brand choice, rather it was the taste that deferred customers from

41


switching to the other brands of glucose biscuits.The Parle-G customers

are not against consuming the Tiger brand provided they get the same

quality taste as that of the Parle-G brand. They pointed out that the Tiger

brand has a little lower milky taste and is a little sweeter than it should

be. Thus, the company must maintain the price and concentrate on the

brand taste to take maximum advantage of this opportunity. Also,

marketing efforts are required to make the consumers aware of the

brand’s price and make them more of nutrition-conscious so that they can

understand the ‘Glucose H-Force Biscuit’ concept.

CHAPTER - 10

BIBLIOGRAPHYBOOKS:

Marketing Management by Philip Kotler (Prentier Hall of India Pvt Ltd)

Ninth Edition.

Essentials of Marketing Management by Reddy and Appanaih

(Himalaya Publishing House) Ninth edition.

Consumer behavior by R Nair (Himalaya Publishing House) Third

Edition.

Keeping Customer Happy by Jacqueline Dunckel and Brian Taylor (Jaico

Publishing House) Second Edition.

Essentials of marketing Management by S A Sherlaker (Himalaya

Publishing House) Twelfth Revised and Enlarged Edition Reprint.

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NEWS PAPERS:

THE ECONOMIC TIMES

THE TIMES OF INDIA

HINDUSTAN TIMES

MAGAZINES:

BUSINESS INDIA

INDIA TODAY

INTERNET WEBSITES:

www.britanniaindustr ies.com

www.parlebiscuits.com

www.priyagold.com

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http://www.priyagold.com/

http://www.parlebiscuits.com/

http://www.britanniaindustries.com/


Brand Ambassadors

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PRODUCT ADVERTISMENT

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46


ADVERTISMENT

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48

a study on effectiveness of brand strategy of britannia biscuits

Documents

brand awareness

brand equity

brand elements

variety of brand

individual brand names

aggregate brand level

old norse word brand

marketing thinking