BISCUIT INDUSTRY IN INDIA

BRITANNIA VS PARLE

By Krishnan L

Industry Analysis The consumer food industry mainly consists of

ready-to-eat products or ready-to-cook products such as pasta products, bakery products, biscuits, soft drinks, etc.

Bakery industry in India is probably the largest among the processed food industries, the production of which has been steadily increasing in the country. The two major bakery industries, viz., bread and biscuits account for almost 82% of the total bakery products.

Biscuit Industry in India – An Overview

Biscuit industry in India in the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries.

The major Brands of biscuits are- Britannia, Parle

Bakeman, Dukes, Horlicks, Priya Gold,Anmol.

Other brands : Biskfarm-East, Rose-Andhra Pradesh & South, Sobisco-East and North East also launched in Andhra Pradesh and Madhya Pradesh., Nezone- North East, Bakewell.

A few MNCs, i.e. Kellogs, Smith Kline Beecham, Heinz etc are also entering the biscuit industry in India.

Based on the production in India biscuits can be broadly classified

into:-

Main Categories of Biscuits : Glucose, Marie, Sweet, Salty, Cream & Milk. Glucose biscuits accounts for more than 50% of the total biscuit market value, Parle G dominate this market with more than 60% share followed by Britannia and ITC.

Consumption

Industry Research Objective: To study

eating habits with regards to consumption of biscuits amongst people.

The composition of choices of food of people for breakfast and snacks shows that only 16%

prefer biscuits.

Industry Research Of the people who

consume biscuits 25% people prefer cream biscuits,

12% prefer wafer biscuits,

34% prefer sweet plain biscuits and

29% of people prefer namkeen or salty biscuits.

Industry Research The number of people

who eat biscuits include 37% of people who eat them everyday,

29% eat twice a week, 14% eat four times a

week, 8% eat once in 15 days, 6% eat once in 10 days

and once in a month.

Britannia: Company Overview

1892 - Britannia established with an investment of Rs. 295 in Kolkata

2007- Britannia ranked No.1 in the Metros across all categories.

The Origin of “Eat Healthy Think Better” Britannia saw the writing on the wall. Its "Swasth Khao Tan

Man Jagao" (Eat Healthy, Think Better) re-position directly addressed this new trend by promising the new generation a healthy and nutritious alternative - that was also delightful and tasty.

Net sales for FY 2008-09 are Rs 3,112.2 Cr. For FY 07-08 biscuits recorded sales of Rs. 2,329.9 Cr

Key Products Tiger, Good Day, Bourbon, 50-50, Treat, Milk Bikis, Marie Gold, NutriChoice, Timepass, Little Hearts

Makeover of Britannia

From being a manufacturer of baked products, BIL kicked off a diversification exercise to become a comprehensive foods company making cheese and other dairy products.

BIL hired a Paris based design studio- Shining Strategic design, to craft a new logo and corporate slogan. Research showed that the brand 'Britannia' was synonymous with trust and quality, and the wide portfolio of products was seen as a source of strength .

Current market position of Britannia biscuits

INTRODUCTION G

ROWTH

MATURITY

DECLINE

Time

Sales

TreatPure Magic

Little HeartsMarieNice

Good DayTiger

Nutri Choice

SWOT ANALYSIS STRENGTHS

BIL has strong brands like Tiger, Marie gold and Good day. It also haswell penetrated distribution network.BIL is holding leadership position insix out of seven sub-categories ofbiscuits.

WEAKNESS

BIL is unable to improve its marginsince last few quarters due to increasing input costs.

OPPURTUNITIES

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

THREATS

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

Parle: Company Overview

Established In 1929, company has factories in Mumbai, Bangalore, Bahadurgarh in Haryana and Neemrana in Rajasthan, Additionally, Parle Products also has 7 manufacturing units and 51 manufacturing units on contract.

Company has about approximate market share of 30-35% of the total biscuit market.

Parle-G accounts for the major volume turnover it accounts for approximately 80% of the total biscuit tonnage for the company.

The brand recently achieved the distinction of being the highest selling Glucose biscuit in the world.

Parle G, enjoys a 69% share in the glucose biscuit market, selling 2.7 million tones a year.

Key Products : Parle - G , Hide and Seek ,Krackjack ,Hide & Seek Milano ,Magix ,Digestive Marie ,Monaco ,Parle Marie ,Kreams ,Milk Shakti ,Parle 20-20 Cookies ,Golden arcs ,Nimkin ,Kreams Gold ,Chox ,Monaco Jeera

Brands Ambassadors With Comics Chandamama, The 60-year-old magazine printed by the

company sells 375,000 comic books in 13 languages was used by Parle to advertise its products.

With Celebrities The agency figured that they wanted to feature ‘real people’

as brand ambassadors of Parle-G. And Parle-G’s five ‘driving propositions’ (taste, nutrition, meal substitution, mental development/alertness, and affordability/value-for-money) by making them integral to the campaign thought.

Hritik Roshan, Aamir khan and Darsheel safary endorsed hide n seek biscuit which raised the market share considerably.

Current market position of Parle biscuits

INTRODUCTION G

ROWTH

MATURITY

DECLINE

Time

Sales

Hide & Seek Krackjack Parle gMonaco

Kreams

SWOT ANALYSIS

STRENGTHS

Parle has strong brands like Monaco, Parle g and Krackjack. It also haswell penetrated distribution network.It has very good distribution channels in rural areas also. It is the most well known brand.

WEAKNESS

There are less number of brands under its umbrella than Britannia. Its portfolio does not include breads and cakes.

OPPURTUNITIES

The Glucose brand that enjoyed a monopoly in the market for decades surpassed the expectations of its makers, in popularity. It may look for markets aboard.

THREATS

Britannia is eyeing the Glucose brand and aims to overtake Parley's within three years' time. The entry of big players in the field could mean more competition for old hands in the game. A big threat to legitimate biscuit makers comes from duplicates.the duplicates market.

Britannia Vs Parle(Corporate Social Responsibility)

Britannia Industries, Naandi Foundation and Global Alliance for Improved Nutrition have come together to provide specially developed Britannia Tiger Iron Fortified Biscuits for 1.5 million children in Hyderabad as part of the AP Government’s mid-day meal programme.

Every year, Parle organizes Saraswati Vandana in the state of West Bengal during the festival of Saraswati Puja, inviting schools from all across the state to participate.

These events gives a chance to interact with children on a one-to-one basis, and promote the belief of fun and health for the whole family.

Intellectual Property Rights (IPR) Britannia Industries Ltd

has developed several brands and created recipes in respect of its products.

The TIGER Brand which was developed by the Company has become one of the most successful brands in the country, with significant potential outside the country too.

Parle Products Ltd has been using the trademark GLUCO on its biscuits popularly known as Parle-G biscuits. The Parle-G is given more prominence on the packet than the GLUCO.

Parle has strong brands like Monaco, Parle g and Krack jack. It also has well penetrated distribution network. It has very good distribution channels in rural areas also. It is the most well known brand.

MARKET SHARE

39%

33%

8 %

13 %

upcomings 2010 – New Prospects in the Indian Biscuit

Industry  GlaxoSmithKline Consumer Healthcare: Junior Horlicks

Biscuits-toddler biscuit category. PepsiCo India Launched biscuit brand Aliva, it will be

produced by food division Frito Lay India. United Biscuits (UK), world’s third largest biscuit

company, is set to enter India market. Shakti Bhog plans to enter biscuits segment

CONCLUSION

Britannia and Parle, both are leaders in their respective segments.

Parle should enhance it’s product mix and focus on lifestyle products.

Britannia should develop economy range biscuits to capture the low income groups.

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