Contents

1. Executive summary

2. FMCG industry analysis

3. Britannia Industries

3.1 Mission

3.2 Vision

3.3 Existing strategies

4. Internal assessment

4.1 Financial analysis

4.2 Organizational chart

4.3 Marketing position,

4.4 Marketing Strategies

4.5 Value chain analysis

4.6 SW analysis

5. External analysis

5.1 Porters model

5.2 OT analysis

6. Strategy Formulation

6.1 TWOS analysis

6.2 GE matrix

6.3 BCG matrix

Conclusion.

India Biscuits Industry Overview:

India Biscuits Industry is the largest among all the food industries and has a turn-over of around Rs.3000 Cr. India is known to be the second largest manufacturer of biscuits, the first being USA.

It is classified under two sectors:

Organized Unorganized

Bread and biscuits are the major part of the bakery industry and covers around 80 percent of the total bakery products in India. Biscuits stand at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production.

India Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for ready-made food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food products for every age group.

States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the bakery products.

The total production of bakery products have risen from 5.19 Lakh tonnes in 1975 to 18.95 Lakh tonnes in 1990. Biscuits contributes to over 33 percent of the total production of bakery and above 79 percent of the biscuits are manufactured by the small scale sector of bakery industry comprising both factory and non-factory units.

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery production. Few years back, large scale bakery manufacturers like Cadbury, nestle, and Brooke bond tried to trade in the biscuit industry but couldn't hit the market because of the local companies that produced only biscuits.

The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully.

Industry Profile-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

1) ‘Fast Moving’ is in opposition to consumer durables such as kitchen appliances that are generally replaced less than once a year.

2) Three of the largest and best known examples of Fast Moving Consumer Goods companies are Britannia, Nestlé, Unilever and Procter & Gamble.

3) 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 .

4) This has been due to liberalization, urbanization, increase in the disposable incomes and altered lifestyle.

5) . 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.

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.

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

Introduction

Britannia, one of the premier food product company in India. Britannia started as a small biscuit company in 1892 and has grown to a household name.

Britannia started its business in Calcutta (now Kolkata) with an initial investment of Rs. 295. From thereon, Britannia's business flourished acquiring a reputation for quality and value.

Britannia Industries Ltd. has a number of awards and accolades in its name like -

1) Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'. 2) The Economic Times pegged Britannia India's 2nd Most Trusted Brand.

Activities Britannia product line includes biscuits, snacks, packed milk, cheese, butter, buttermilk and yogurt. Britannia owns popular brands like:

1. NutriChoice Sugar Out. 2. NutriChoice Digestive Biscuit. 3. Treat Fruit Rollz. 4. New Britannia Milk Bikis. 5. Britannia Marie Gold Doubles. 6. Britannia 50-50. 7. Britannia Tiger Biscuits.

The Wadia Group (parent company of Britannia) along with Group Danone of France has turned up to be an International FMCG Major specializing in Fresh Dairy Products, Bottled Water and Biscuits/Cereals. One of the World leaders in the food industry, some of its achievements are:

1) 1st worldwide in Fresh Dairy Products. 2) 1st worldwide equally placed in Bottled Water (by volume). 3) 2nd worldwide in Biscuits and Cereal Products.

GROUPE DANONE three core business areas are Fresh Dairy Products, Beverages and Biscuits and Cereal Products strives to improve the lives of people around the world by providing them with better and value added food products. Its dominant position worldwide is based on major international brands and on its rock solid presence in local markets (about 70% of global sales come from brands that are local market leaders.)

Performance

Britannia has registered a turnover of Rs 21,993 million for the year ended 31st March 2006-

07. Britannia has posted Net Profit to the tune of Rs 1076 million for the year ended 31st March 2006-

07.Introduced in 1998 with favors such as mint, orange and chocolate. But it did not really succeed in

capturing the consumer’s attention. So after a few years it was re launched with just one flavor i.e.

chocolate flavor with new packaging. After the re-launch it has started gaining attention of its potential

buyers and hence is in the growth stage of its life cycle. It has to fight for its stand in the market since it

faces competition from Britannia’s good-day Choco-nuts.

Packaging and Labeling

The time spent by a customer for picking up a product from a retail outlet is a few seconds; therefore a

package should appeal to a customer within such a small interval of time. In this, both packaging &

labeling play an important role in attracting customers both visually & Psychologically.

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.

2006-07 was an exceptional year for Britannia with top line sales growing at 27.5%, making Britannia the

leader among FMCG Companies in terms of organic growth. It also saw the Bread, Cake and Rusk

business grow 54% to become a Rs. 2,000 mn business.

Top line growth was driven by investment in the fundamental growth pillars of brands -

renovating existing brands and launching new ones and expanding reach. With the segmented and

sharpened go to market strategy , Britannia’s brands now have greater availability in rural markets and

pervasive presence in modern trade.

In a fiercely competitive environment Britannia outpaced market growth and Britannia brands

continue to lead the market in every category, except for Glucose biscuits. Britannia was ranked second

among FMCG Companies in the Business World Most Respected Company Survey2006.

Britannia's strategy of strengthening and sharpening its brands and liberating them from existing

formats and conventional biscuit archetypes has paid off. In that context, Tiger is now more than a

glucose biscuit and includes cream and coconut varieties. The Tiger Chota extension draws on the kids

snacking habit presenting biscuits as small, pop-able, snacks in a pouch pack. Similarly, Treat added

Fruit Rollz to its repertoire of delightful and indulgent experiences for kids.

Innovation has shown its promise as a key business driver addressing several purchase and consumption

opportunities both in-home and out of home, as well as for gifting. Britannia's focus on innovation has

meant more new offerings (brands, product and pack forms) than the rest of the industry combined.

Prominent innovations include Chota Tiger, 50:50 Chutkule, Treat Fruit Rollz, NutriChoice Digestive,

NutriChoice Sugarout, Renovated Milk Bikis and Chocolate Cream in the Tiger range.The Bread, Cake

and Rusk portfolio was strengthened with the successful national launch of Good Day cup cakes and

extension of rusk to the south.

As a corporate , Britannia has worked for the benefit of all stakeholders - shareholders,

consumers, dealers, suppliers, bankers and employees. It has established an excellent track record in

terms of its financial performance and dividends distributed to its shareholders . This has been

adequately demonstrated with the Company's topline growing from 8, 478 Mn in 1998 to 23,171 mn in

2007, a growth of 173% over the last 10 years. The net profit grew even more significantly at 273 % from

Rs 289 Mn in 1997-98 to Rs 1,076 Mn in 2006-07, giving a CAGR of 15.72 %.

.

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:

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 colours red, white, and green each having its own significance. Colour 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 tonne 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 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 tonnes 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

Major Players in the Industry

1) BRITANNIA INDUSTRIES LTD.(BIL)2) PARLE3) ITC Ltd.4) Surya Foods & Agro Ltd. (PRIYA GOLD)

In the 21st Century, Britannia strode as one of India's biggest brands and the pre-eminent food brand of the country. It was also equally recognized for its Innovative approach to products and marketing.

Britannia- its Market Share and Overview

BIL is the leading player in Bakery Products (Biscuits, Bread, Rusk and Cake), jointly promoted by French food major Danone and Nusli Wadia. It enjoys market leader ship in Biscuits with 39 % market share in terms of value. It owns key brands like Tiger, Good Day and Marie Gold.

There are six brands contributing to 90% of its sales. Each of these brands generate sales exceeding Rs.1 billion and these brands include Good Day, Tiger, 50:50,Treat, Milk Bikis, and Marie Gold.

The company wants to give a special thrust on these brands for better margin. New variants in these brands, attractive packaging formats and introduction of small SKUs are expected to give volume growth in the domestic market. In the last year these brands achieved double-digit growth.

BIL enjoys market leadership in all the sub-categories of biscuits, except in the Glucose category where Parle is the leader. A recent strategic acquisition of 50% stake in Bangalore based ‘Daily Bread’ gives footholds in premium breads, cakes and high end ready to eat foods and snacks. BIL is looking forward to increasing its stake in it from current stake of 50%.

Britannia is playing aggressively in the ‘Out Of Home’ Consumption market, which has Enormous potential. The low unit products help in broadening the customer base. Small and convenient SKUs attract more consumers to consume these, while they are outside the home.

1) Chota tiger has been launched at Rs.2/- for 50 gms 2) Marie gold has been launched at Rs.5/- for 75 gms,3) Little Heart at Rs.4/- for 25 gms

We believe that ‘OOH’ category will contributes about 7-8% of total sales in next two to three years.

Products offered by Britannia industries

Britannia Portfolio

GLUCOSE BISCUITS

TIGER CHOTA TIGER TIGER CHAI BISKOOT TIGER ROSEMILK CREAM TIGER BRITA ENERGY POPS TIGER CHOCLATE CREAM TIGER ORANGE CREAM TIGER COCONUT ENERGY TIGER ELAICHI CREAM TIGER KESAR CREAM TIGER BANANA

CREAM BISCUITS

TREAT CHOCO GELO TREAT DELICIOUS DATES TREAT APPLE PUNCH TREAT FLAVOURED TANGY ORANGE TREAT STRAWBERRY FLAVOURED SURPRISE BOURBORN TREAT TREAT ELAICHI FON TREAT JIM JAM TREAT MANGO MISCHIET TREAT MASTI ORANGE TREAT PINEAPPLE PRANK

NUTRI CHOICE BISCUITS

NUTRI CHOICE 5GRAINS NUTRI CHOICE DIGESTIVE NUTRI CHOICE CREAM CRACKER NUTRI CHOICE THIN ARROWROOT NUTIR CHOICE SUGAROUT CHOCLATE

MARIE BISCUITS

MARIE GOLD VITA MARIE GOLDMILK BISCUITS

MILK BIKIS MILK BIKIS CREAM

GOOD DAY BISCUITS

GOOD DAY CHOCONUT GOOD DAY BUTTER SCOTCH GOOD DAY HONEY & RAISIN GOOD DAY CHOCLATE CHIP GOOD DAY RICH BUTTER COOKIES GOOD DAY RICH CASHEW COOKIES GOOD DAY RICH PISTA BADAM

50-50 BISCUITS

50-50 50-50 MASKA CHASKA PEPPER CHAKKAR

LITTLE HEARTS

LITTLE HEARTS CLASSIC

PURE MAGIC

PURE MAGIC

Communication Mix

DISTRIBUTION NETWORK OF BRITANNIA BISCUITS

MANUFACTURER

↓

C & AGENTS

↓

SUPER STOCKISTS

↓

STOCKISTS

↓

RETAILERS

For a successful product it is essential for the company to use the communication mix in the right way. An effective communication mix includes the right message through the right message and the time of the communication should be right. The companies communicate with their customers through the promotional activities that they do from time to time. The companies use this mix to be in constant touch with their customers and also to keep reminding them of their presence.

The company needs to keep few criteria while designing the mix like:

• The target segment for a product needs to be kept in mind while designing a mix.

• The choice of media is very important as the advertisement has to reach to the masses.

• The objective of the communication has to be well defined as to whether it will be for a new product or an existing product.

The elements of the marketing communications mix

Britannia’s communication mix has the following major components :

• Advertising

• Sales Promotion

• Public relations and Publicity

• Direct and Interactive Marketing

• Personal Selling

SWOT ANALYSIS

Strength

Fulfill one of our Basic Requirement

among Air , Water , Food, Shelter

Widely accepted in all Generations

Easily available in various forms

Provide good Instant Remedy for hunger

in the form of readymade food

Preserves the non seasonal food and

makes it available all throughout the year

Weakness

Decreases nutritional value

Increases the cost of food product

Industry and technology requires high

investment

Regular usage of processed food can

cause alteration in health

Opportunities

Increase economy of India

Generate employment opportunity

Good quality of Goods

Provide competition to foreign companies

Improve living standard

Provide goods to nation at cheaper rate

Inflow of foreign reserve and funds for the

govt.(taxes)

Threats

Many companies are result oriented

Increase in pollution

Sometimes provide poor quality of product

for more profit

Lack of technology

Unable to utilize all the resources

efficiently

PEST & Micro environmental Factors:

A PEST analysis is used to identify the external forces affecting an organization .This is a simple analysis

of an organization’s Political, Economical, Social and Technological environment. A PEST analysis

incorporating legal and environmental factors is called a PESTLE analysis.

Political

The first element of a PEST analysis is a study of political factors. Political factors influence organizations

in many ways. Political factors can create advantages and opportunities for organizations. Conversely

they can place obligations and duties on organizations. Political factors which influence the Britannia are

as follows:-

Methodology of development of Standards .

Provisions of Labelling.

Acceptance of a basic list of additives.

Matters relating to GMP(Good Manufacturing Practice), GHP(Good Health Plan)

Issues related to Codex.

Procedure for sampling& launching of Prosecution.

Grading of violations according to the nature of discrepancy.

Legislation such as the minimum wage or anti discrimination laws.

Voluntary codes and practices.

Market regulations.

Trade agreements, tariffs or restrictions.

Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and

imprisonment. Ineffective voluntary codes and practices will often lead to governments introducing

legislation to regulate the activities covered by the codes and practices.

Economical

The second element of a PEST analysis involves a study of economic factors.

All businesses are affected by national and global economic factors. National and global interest rate and

fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers,

suppliers and other organisational stakeholders such as suppliers and creditors behave within society.

An economy undergoing recession will have high unemployment, low spending power and low

stakeholder confidence. Conversely a “booming” or growing economy will have low unemployment, high

spending power and high stakeholder confidence.

A Britannia will respond to economic conditions and stakeholder behaviour. Furthermore Britannia will

need to review the impact economic conditions are having on their competitors and respond accordingly.

A truly Britannia has to be aware of economic conditions across all borders and needs to ensure that it

employs strategies that protect and promote its business through economic conditions throughout the

world.

Social

The third aspect of PEST focuses its attention on forces within society such as family, friends, colleagues,

neighbours and the media. Social forces affect our attitudes, interest s and opinions. These forces shape

who we are as people, the way we behave and ultimately what we purchase. For example within the UK

peoples attitudes are changing towards their diet and health. As a result the UK is seeing an increase in

the number of people joining fitness clubs and a massive growth for the demand of organic food.

Population changes also have a direct impact on organisations. Changes in the structure of a population

will affect the supply and demand of goods and services within an economy. Falling birth rates will result

in decreased demand and greater competition as the number of consumers fall.

In summary Britannia must be able to offer products and services that aim to complement and benefit

people’s lifestyle and behaviour. If Britannia do not respond to changes in society they will lose market

share and demand for their product or service.

Technological

Unsurprisingly, the fourth element of PEST is technology, as you are probably aware technological

advances have greatly changed the manner in which businesses operate.

Organisations use technology in many ways, they have

1. Technology infrastructure such as the internet and other information exchange systems including

telephone

2. Technology systems incorporating a multitude of software which help them manage their business.

3. Technology hardware such as mobile phones, Blackberrys, laptops, desktops, Bluetooth devices,

photocopiers and fax machines which transmit and record information.

Technology has created a society which expects instant results. This technological revolution has

increased the rate at which information is exchanged between stakeholders. A faster exchange of

information can benefit Britannia company as they are able to react quickly to changes within their

operating environment.

However an ability to react quickly also creates extra pressure as businesses are expected to deliver on

their promises within ever decreasing timescales..

Technology will continue to evolve and impact on consumer habits and expectation, if Britannia ignore

this fact then it will definitely face extinction.

Leves of Strategic management

Characteristics Corporate level Business level Functional level

Scope Entire Org. SBU or single

business co.

Functional Area

Source &

Motivation/Direction

Board of directors/

CEO

Corporate strategy SBU strategy

Responsibility Top level Top level SBU Functional level

corporate

managers

managers or Top

level single

business co.

managers

managers

Time Horizon Long term Medium to long

term

Short to long term

Specificity General

statements of

overall direction &

intent

Concrete &

Operationally

oriented

Action &

implementation

oriented

Type Conceptual Mixed Operational

Flexibility High Medium Low

Cooperation Required Considerable Moderate Little

Cost Major Medium Modest

Corporate strategy

"Our markets are poised for exciting times. As a successful organisation, we must not only keep pace

with consumer expectation, but also anticipate them. Our new identity is to lay the base to project our

future as a successful 'food' company, a company that provides high quality and tasty, yet healthy foods

and beverages

The Group Management Board comprises the Vice Chairman & Managing Director, Presidents of the

Business Sectors as well as heads of certain key corporate functions. In 2010, Britannia, one of the

India’s largest biscuit brands held a market share of 38% in terms of value. Indian biscuit industry, the

third largest producer of the biscuits in the world was highly under-penetrated. This presented numerous

growth opportunities to new as well as existing players. Apart from the presence of big players like ITC

Foods and Parle, the local manufacturers of biscuits and other Indian snacks had been raising concerns

for Britannia. Besides competition, Britannia faced critical challenges due to declining margins in the

biscuit industry due to the increasing costs of raw materials. Its profit had been on a decline since 2005.

Though Britannia had forayed into dairy and bakery products, 90% of its revenues still came from its core

business in biscuits category which was largely driven by product innovation. The case, highlighting the

Britannia’s growth strategies, provides scope to analyse opportunities and challenges for Britannia in the

Indian biscuit industry.

Pedagogical Objectives:

Product portfolio management, brand extension and market segmentation of Britannia

Analysing product innovation strategies of Britannia as its competitive advantage

Organic and inorganic growth strategies of Britannia to face the challenges in the Indian biscuit

industry.

Business Strategy

It relates to the functional areas scuh as production,marketing,finance,personnel etc.

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 stratergy 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. Britinnia has been working with an international consulting agency for building capabilities shopper

understanding as opposed to consumer understanding.

4. In 2008, Britinnia divided its product portfolio into two distinct categories: "health and wellness" and

"delight and lifestyle." Products such as Tiger glucose and NutriChoice 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 workers in the business process outsourcing industry as a potential new market.

6. Britinnia 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%.

7. On the infrastructure front, Britannia has added 200,000 tons of annual capacity, an increase of about

60%. It has also devised a long-term distributed manufacturing stratergy, put in place a continuous

replenishment supply efficiency system, and strengthened its supply chain management significantly.

Functional strategy

Developing and managing an advertising program includes

1. Selecting the objective

2. Deciding on the advertising budget

3. Developing the advertising campaign

4. Choosing the communication vehicle

5. Evaluation

Britannia has adopted three-pronged strategy

1. Freshness (lower pipeline stock)

2. Availability (improve distribution network)

3. Visibility (more shelf space at modern trade)

Promotional strategies

"Eat Britannia, Go for World Cup" was the theme adopted in 1999 .People bought

the biscuit packs and searched for the lucky scratch for flying to England to see world Cup Cricket

match.The sales bounced 37% high on account of this strategy.The scheme came alive again

during the world Cup Match in 2002-2003 in South Africa. " Lagan - the super hit movie "

brought fame to Britannia Biscuits also as 40000 buyers of Britannia Biscuit packs were invited to

see and a small lucky group to play the game with the movie Stars of Lagan. What a novel way to

promote a product - a perception in correct proportion indeed.

Key Steps towards strategic planning

VISION      

Think Of A Purpose That Spirals Forth To Create Innovations From Within This Visionary

Zeal; Built On Trust And Knowledge, Has Empowered The Wadia Group In Various

Business Enterprises For more Than A Century. It now promises much more in the New

Economy ...

To dominate the food and beverage market in India with a distinctive range of “Tasty Yet

Healthy” Britannia brands.

Every third person, in India, should be a Britannia consumer .

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.

To be one of the best biscuit company.

Development of production in partenership with our customers to their specification.

Flexibility & capability tomeet small & large production runs

Objectives

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.

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.

As part of the growth strategy, the company always try 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.

Goals

Once the company developed their vision, mission and core values, they can then develop the goals and

objectives needed to achieve your vision.

Goals are general statements of what Britannia wants to achieve. So they need to be integrated with

their vision. They also need to be integrated with their mission of how they are going to achieve their

vision.

To improve profitability

To increase efficiency

To capture a bigger market share

To provide better customer service

To improve employee training

To reduce carbon emissions

Stategies

Britannia spends a great amount on promotional strategies like advertisements for the various products it

offers. It uses a mix of all the media forms to reach the maximum consumers. They advertise through

television, print, radio and reach out to their target audiences.

Some of Britannia’s popular business promotional strategies are as follows:

Britannia Khao, World Cup Jao which took 100 mega-winners to Old Blighty to watch the

Cricket World Cup at Britannia's expense. This was a very smart initiative taken by Britannia to

motivate consumers to buy more of Britannia’s product in order to increase there chances of being

selected for the tour. Which in turn helped the company to boost up its sales before and during the

mega event.

Britannia Rules! A day before the World Cup Of Cricket 99 began in England on May 14, 1999,

one of Britannia Industries' senior-most marketing managers was spotted at Mumbai's Sahara

International Airport-escorting a gaggle of excited children, all of them sporting Britannia caps,

Britannia T-shirts, and other assorted Britannia paraphernalia. No, he wasn't test-positioning

yet another brand of biscuits on a group of unsuspecting young 'uns in an airport lounge. Those

kids were actually some of the 100 mega-winners of the Britannia Khao, World Cup Jao

contest, being flown off on charters to Old Blighty to watch the World Cup at Britannia's expense.

See Cricket. Sleep Cricket. Eat Only Britannia (sic!).

Another excellent example of sport personality craze and innovation came from Britannia. The

company recently offered a white marble free with every pack of Britannia Treat. The marble has

a caricature of a Indian Cricketer printed on it, an innovative conversion of craze for cricket &

cricketing stars exploited with a fresh perspective.

Associated Punch lines of various Britannia Products

Products Punch Lines

1) 50-50 “Very Very Tasty Tasty”

2) Good Day “Ho gaya re Good-Day”

3) Littile

Heart

“Direct Dil se”

4) Marie

Gold

“Tea Time biscuit”

5) Milk Bikis “Eating Milk”

6) Neutri

Choice

“Swasth khao Tan Man jagao”

7) Time pass “Perfect partner for Time pass moments”

8) Tiger “Eat Healthy Think better”

9) Treat “Lovable devils”

The sales promotion strategy followed by Britannia includes gift like Toys included in its packs of

biscuit segmenting towards lower age group categories.

Another strategy followed by Britannia is increasing the weight of various product packs from 60

gram packs to 90 gram packs at the same price tags.

Values –

values define the business in terms of the principles and values that the business leaders will follow.

They provide the bounds or limits of how the business leaders will conduct their activities while carrying

out the vision and mission.

Britannia’s Core Values:

Provide economically sound business opportunities for our members.

Practice high ethical business standards.

Respect and protect the environment.

Produce high quality products that are safe for consumers.

Meet the changing needs and desires of consumers.

The values tell a lot about the the leaders of AgVA and how they will conduct their business activities

and relationships.

Programmes

Programmes are statements of specific actions or activities used to achieve an objective.Iis a final touch.

You need to identify specific individuals who have the responsibility for implementing the action plans.

Creating the statements described above may seem like a lot of busy work. But, if done properly, they can

save money and time and increase the odds that company’s venture will succeed. Creating these

statements will help you focus on the important aspect of your business.

Oraganization-Strategic Management Process .

1 Strategy Formulation

1) Framing Mission and Objectives:- In the step Britannia Company Forms its mission and objective, which has been decided by top level management mainly by Mrs. Nasali wadia and Ms. Vinita Bali

2) Analysis of the Internal Environment:- In this part Britannia company analyze its strength, weakness , opportunity, and threat which I have already shown you before, this is also decided by the top level management or build up automatically as company progressed up.

3) Analysis of the External Environment:- In this part company done external analysis i.e. PEST analysis. In market Briatannia is a big name so politically he is strong, Chairmen Nasali wadia is engaged in many Indian government and political society.

4) Gap Analysis:- Britannia biscuits is the most selling biscuits brand across the globe,Britannia biscuits are healthy,efficient, powerful, standardized, segmented according to categories and cheap in price. So all together customer gets what they need, sometime there is gap between their expectations and companies delivery of product.

5) Framing Alternative Strategies:- They have also back up plan, they use those plan according to the market condition.

6) Choice of Strategy:- Britannia’s first choice shop they kept Britannia contest to attract customer. They can think differentiation as their alternate choice.

Strategy Implementation

1) Formulation of Plans: - The strategy planned by top level management. But the implementation part has done by Business level and function level.

2) The plan that how can they achieved the target. For this they divided the big work into small work. After that they implement small work.

3) Programs and projects:- After acquiring the biffest share in the market they are preparing their company for the next step to achieve its goal.Their management is trained by the training program to make them familiar with the Britannia family.

Resource Allocation:- To develop Britannia Biscuits market Britannia company is using various resources such as physical resources, financial resources and human resources.

4) Structural Implementation:- There is need for organizational structure to implement strategies.britannia company’s structure is the framework through which an organization operates.

5)Functional Implementation:- A manager can also change activity of the sales person. The manager that is head of the department of the Britannia company take all roles and responsibilities to get the work done from others.the decisions taken by them are implemented by all the workers or employees.

6)Behavioral Implementation:- Britannia is very much employee oriented organization the marketing departments have given the performance bonus & they have been send to the fatory to demonstrate biscuits.

Strategy Evaluation

1) Setting of Standards:- In this level manager set target to his sales person, generally every departments work on target basis.

2) Measurement of Performance:- Now in this case manager analyze that whatever the target had given to the sales peoples has done or not.

3) Comparison of Actual Performance with standards:- Now they check the actual performance of the sales people and analyze the performance.

4) Finding out deviations:- In this case they check why the sales people not able to achieve the target, whatever the target had given to the sales people where was the deviation.

5) Analyzing Deviations: - After that the manager and top level management check that deviation.

6) Taking Corrective measures:- After that manger tries to solve those deviation. Basically the sales people will again send to the training field review and on job training, this is the method Britannia adopts quite often.

The Britannia products which includes in stars are=

1. Milk treat

2. 50-50

3. Tiger

4. Littile hearts

STARS:High market growth rateHigh market shareHuge cash generation Huge cash consumptionHuge investment in growing marketBecomes cash cows when market growth rate declines

The Britannia products which includes in stars are=

Marie-gold

Good-day

Treat

CASH COWS:Low market growth rate High market shareLEADER in mature market.Huge cash generation than consumptionLow prospects for future growth-so no new investment in this category.Investment into STARS and QUESTION MARKS.

The Britannia products which includes in stars are=

Time pass

Pure magic

The Britannia products which includes in stars are=

Nutri choice

Organisational structure of Britannia

QUESTION MARKS:

High market growth rateLow market shareLow cash generation than cash consumption.Analyze carefully the market situation Investment into high growth potential market. critical decision making for managers.

DOG:Low market growth rateLow market shareNeither large cash generation nor consumption.Also known as CASH TRAPS.Dogs should be sold off or liquidated.

ORGANIZATIONAL STRUCTURE

Mr.Nasali wadia(chairman)

Vinita Bali(managing Director

Mr. Keki Dadiseth(Director)

Mr. Avijit Deb(Director)

Mr. A.K.Hirjee(Director)

Mr. A.K.Hirjee(Director)

Nimesh N Kampani

Britannia Industries

Wholesalers

Point of sale ie Retailers

Kirana Shops

Agents

Big retail units like Food Bazar and for Exports

As the value chain is the combination of primary functions and secondary functions (supportive). Where

primary functions starts with suppliers or any inbound activities, production of goods and reach to the

customer through its supportive functions to turn potential customer into consumer.

FUNCTIONAL STRATEGIES .

In an organization there are namely four important functions i.e.

Ashok Gupta [Accouting]

Shridhar Panshikhar (national sales officer)

Jehangir Tankariwala(General Manger)

P.Govindan(General Manager)

VINITA BALI(Managing director)

T.S. Venketaram[Manufacturing Head]

K.N.Shashikanth[Quality Assurance Manager]

Marketing Strategies.

BRITANNIA company has won many awards , because of their high quality products and customer

satisfaction and became 1st biscuit company in world. Since they are also worth for their marketing

strategies let’s gaze across.

The main marketing strategies followed by the firm are-

1) Product strategy.

2) Reduced losses by way of elimination of losses.

3) Target customers to capture growth in each category by segmenting the market both along

conventional lines and through segmentation.

4) Look beyond the product, at the customer. And use knowledge to reposition the brand.

5) High class R&D, and recently enhanced testing and evaluation facilities

6) A corporate image of quality.

Eat Healthy. Think Better. Buy Britannia. The 80-year-old biscuit king is reinventing itself.

Britannia now wants to become a foods giant, with the newly-added tag of health and nutrition.

What's more, with a clever formula of prices and products, it is targeting every segment of the

Indian market.

After all, the Rs 1,030-crore Britannia had spent a whopping Rs 10 crore on the bkwcj contest-the

single biggest promotion ever in the Indian marketing history. Instead of concentrating on a few of

its biscuit brands, Britannia included all 16 of them in the 7-level contest it ran, which blocked the

air-waves for 13 weeks. The result: 1.60 crore customers actually exchanged 4 empty packs each

for the booklet on cricket that came as the first reward

Pricing strategy.

1) Cost based pricing.

2) Demand based pricing.

Functions of Business

3) Competition oriented pricing.

4) Product oriented pricing.

5) Affordability based pricing.

Promotional strategy.

"Eat Britannia, Go for World Cup" was the theme adopted in 1999 .People bought the biscuit

packs and searched for the lucky scratch for flying to England to see world Cup Cricket match.The

sales bounced 37% high on account of this strategy.The scheme came alive again during the world

Cup Match in 2002-2003 in South Africa. " Lagan - the super hit movie " brought fame to

Britannia Biscuits also as 40000 buyers of Britannia Biscuit packs were invited to see and a small

lucky group to play the game with the movie Stars of Lagan. What a novel way to promote a

product - a perception in correct proportion indeed.

Financial strategies.

AsBritannia is diversified business they are also in financial business namedBritannia finance &

kotakBritannia so they get the good sourses of money. Some of them lets come across

1) To have long term capital they issue prefence share shares mainly.

2) BRITANNIA also do Self-financing to meet their capital needs.

3) BRITANNIA has the sinking funds to meet their future uncertainities.

Human Resource strategy.

1) BRITANNIA were previously hiring only male candidates, but they start hiring female HR

managers.

2) They adopted HR Accounting for efficient recording of employee records.

Operational strategies.

1) After the great success of Scorpio BRITANNIA built their confedence in house R&D.

2) Application of techniques like JQM, KAIZEN, TQM, TPM, JIT, ABC analysis help to increase the

standards of products throughout the manufacturing process.

Corporate level strategies.

Corporate level Strategy helps to achieve performance targets, how to enhance the firm’s long- term

business position by matching mission with the achievements.

So as the corporate level of Britannia make strategies. From the observed data we can assess that

Britannia has been growing in substantial rate, so they are using the Growth strategy.

Britannia is conglomerate business organization as they are in diversified in various sectors. Since they

are using growth strategy they have passed all alternatives like they have been merged, acquired,

amalgamation, so let’s have close look out their growth strategy.The company is jointly controlled by

Groupe Danone of France, which is holding 22% stake and Nulsi Wadia group. Nusli Wadia is one of the

leading industrial houses in the country. Britannia enjoys a prominent position in the industry. Over the

last couple of years, it has trimmed down its wide product portfolio and began to focus on value-added

instead of low-margin products.

It mainly caters to the premium segment. 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 company added two new products -- Sweet Lassi and Milkman Cold Coffee -- to its existing

dairy-based drinks portfolio which includes the `ZipSip' brand of flavoured milk.

Market penetration.

Market penetration occurs when a company enters/penetrates a market with current

products. The best way to achieve this is by gaining competitors' customers (part of their market

share).

Britannia adopted a new strategy which include attracting non-users of your product or

convincing current clients to use more of your product/service (by advertising etc). Market

penetration occurs when the product and market already exists

Market development.

Growth Strategy

Internal alternatives.

Intersification.

- market penetration

-market development

- product development

Diversification- vertical

-horizontal-conglemerat

-concentric

External alternatives.

AcquisitionMerger

AmaglamationJoin venture

Britannia attempt to identify and develop new areas for marketing current products. There are three

general strategies applied in market development:

1) Working within the demographic market to see if any particular demographic group can be

encouraged to buy more of the product or if any new group within the demographics can

be encouraged to purchase the product;

2) Looking at the institutional market to see if these buyers can be increased;

3) Attempting to develop markets in new geographical areas.

To effect these strategies, Britannia attempt new distribution methods, change the design of promotional

efforts, and attempt to discover and promote innovative uses for an existing product.

Product development.

Britannia Company has adopted many strategies to develop new product. So that they can attract

new customers and satisfy old customers as well. New product development is also a necessary

response to new technology and changing market conditions. New product development may be

handled by a dedicated department within the company or may be part of each brand manager's

responsibilities.

Example, Britannia has tried to develop their products as per the customers convenience. Diabetic

customers always prefers biscuits like nutria choice. Britannia treat and Nutri choice.

CONCLUSION

After going thick on the thing, now time is to make a complete picture. While making a product a SKU

(Stock Keeping Unit) of the shop retailers think about the GMROI (Gross Margin Return On Investment)

and they promote the brand which provide them highest. They expect return in the form of profit margin,

company schemes, window display and references of the shop. Among these, company schemes make the

differences and are the highest source of motivation after profit margin. Retailing demands a constant

push from the company.

Marketer needs to use advertising and brand building strategies to address the discerning buyers and

retail push to in different buyers. The manufacturer should understand consumer behavior because

retailers can't help quality and price. It is only up to dealers said it is demand they sell Britannia 42%

agree that at retail shop it is brand popularity, which determine the purchase of biscuit.

There is a greater need to understand the retailer behavior considering them as a team working for the

company may help them to be attached to the company. There should be feeling of belonging to the

company in inner of the retailers. Setting values club for retailers so that they may exchange views with

the company and help in understanding consumer behavior.